LEGAL LOWDOWN
NEWSLETTER #1 - July 2013
TENANCY: NEW APPLICATION FORMS The Tenancy Service of the Ministry of Business, Innovation and Employment (“MBIE”) has announced that from August 2013 there will be new Tenancy Tribunal application forms available online and in hard copy. The changes will be introduced to simplify the application process for landlords and tenants. The new forms will provide more information to guide landlords and tenants through the completion of their applications. The online application process will also be made easier by allowing applicants to attach supporting documents through the application or at the end. For more information on upcoming Tenancy law changes visit the MBIE website: www.dhb.govt.nz
Employment
2
A look at minimum wage entitlements and employment rights. We also look at changes to the Family Court & Criminal Procedure.
Services
A brief overview of recent and upcoming OCLC events and legal services, including our outreach and specialist law clinics.
LATEST NEWS AND UPDATES CONSUMER MATTERS: RENT-TO-BUY SCHEMES If you are planning to purchase a consumer good under a “rent to buy” contract, we suggest you must at the very least, assure yourself of the following information before entering one: A ‘rent to buy’ agreement, also called a ‘rent to own’ agreement is a conditional sale and purchase agreement between the person supplying the goods on credit, (the creditor) and you the purchaser (the debtor). The Commence Commission has stated that a ‘rent to buy’ agreement usually has some or all of the following factors: You pay a deposit & take possession of the good; You make regular (re)payments.
3
A portion of regular repayment is deemed to be the rent. The other portion goes towards the purchase price. If you are unable to complete the Sale & Purchase agreement, you may have to pay a ‘penalty interest’ on the outstanding amount. Upon cancellation of the Sale & Purchase agreement, the creditor may retain all amounts paid by you to the date of cancellation. The title or ownership of the good usually remains with the Creditor until you make all payments required. Some ‘rent to buy’ contracts are made at your home. In that case, the ‘rent to buy’
WINZ
4
A glance at the changes to WINZ benefit entitlements and how this will affect beneficiaries.
agreement is subject to the rules under the Door to Door Sales Act. Under that law, you have the right to cancel the ‘rent to buy’ sale agreement within 7 days. This right must be clearly set out on your written contract. A cancellation form must be given to you by the sales person on the day you sign the sales agreement. The creditor must also inform you in writing of the full cost to purchase the goods you have agreed to purchase under the ‘rent to buy’ agreement. If you are in doubt, we strongly advise you seek assistance before signing a ‘rent to buy’ sales agreement. You have the right to consult before you commit yourself by signing a sale and purchase agreement.
For further information on consumer matters visit the Consumer Affairs Website: www.consumer.org.nz/ or the Commerce Commission site: www.comcom.govt.nz or our website: www.otraracommunitylawcentre.com.