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The Seller Financing Addendum is utilized in New Zealand property transactions where traditional bank financing is either unavailable or needs to be supplemented with seller financing. This arrangement is particularly common in situations where buyers may not qualify for conventional mortgage loans, in commercial property transactions, or when sellers wish to generate ongoing income through interest payments. The addendum must comply with New Zealand's Credit Contracts and Consumer Finance Act 2003, Property Law Act 2007, and other relevant legislation. It includes crucial details about the financing arrangement, such as the loan amount, interest rate, payment terms, security provisions, and default remedies. The document serves as a legal safeguard for both parties by clearly defining their rights and obligations within the financing arrangement. The Seller Financing Addendum should be drafted with careful consideration of both parties' interests and should include all necessary disclosures required by New Zealand law.
