Time running out for people in ‘buy back’ schemes
Government ministers today issued a fresh plea for people affected by housing buy-back schemes to come forward with
information.
When the government stepped in on 20 June 2003 to place eight companies into statutory management, the move prevented
the immediate sale of properties that had been transferred into the name of one of the companies.
“This has meant that no mortgagee sale can occur until the Statutory Managers are satisfied that the mortgage is valid
and enforceable,” Commerce Minister Lianne Dalziel said.
However, in the process of the investigation, the statutory managers have identified other properties that are not
covered by the Statutory Management Order. In these cases, the properties were transferred to third parties (mainly
individuals). The mortgagees for these properties have agreed not to proceed with the sale of properties subject to
those buy back agreements before 31 July 2003.
“This gives people a very short time to get legal advice about their position and to review their options including
whether they can repurchase the property.
“A buy-back scheme is where a person transfers the title to their home to another company or individual and enters into
an agreement to stay in it, usually by paying rent. They may also have a right to buy back the property at a later
date,” Lianne Dalziel said.
Consumer Affairs Minister Judith Tizard said officials have written to all the people they believe may have been
involved in one of these schemes, but are unsure whether they have all the details.
“If people have sold a property as part of a buy-back scheme, then they must obtain immediate independent advice about
the options open to them, including legal or budget advice. If anyone has had any dealings with one of the named
companies, they should also seek advice,” Judith Tizard said.
“People who are unsure if this information applies to them, should contact the Ministry of Consumer Affairs on 0508 468
732 (0508 HOUSEBUYBACK).”
Companies placed into statutory management on 20 June 2003 are:
CH Finance Limited ICMG Leasing Limited The Independent Creative Management Group Ltd Toi Te Atatu Ltd Sleinad Finance
Company Ltd Opol Ltd, ICMG Holding Ltd ICMG Property Company Ltd