Rent-to-buy conviction

A company that misled people into believing they were buying their homes has been convicted on eight charges and ordered to pay reparation.

CMA Property Investments has been fined $40,000 and ordered to pay $42,290 in reparation to occupiers of properties.

It is the fourth company to be convicted in association with the scheme.

In August, Southern Group Housing, Newfoundland Ltd and Invercargill Property Management all pleaded guilty to breaching the Fair Trading Act.

The scheme was aimed at people in Invercargill who were renting homes and would not ordinarily be able to get a mortgage.

The occupiers did not believe they were getting involved in a rent-to-buy scheme.

The occupiers would not have owned their own homes until the end of the 30-year period, said Adrian Sparrow, Commerce Commission director of fair trading.

- NZPA