A summary of facts said the victim would "protest and refuse to comply" with the elderly man's sexual demands until her mother threatened her.
"Just do what he says or I will give you a hiding," the woman told her daughter.
When the girl finally gave in, her mother would tell her she was "proud".
The sexual contact between the man and the girl would take place in a bedroom of the West Auckland home while the defendant was in the lounge watching television.
The man would pay the girl's mother between $10 and $30, court documents said.
The victim's horrific experiences only came to light in February last year when she told a friend's mother she did not want to go home.
Police launched an investigation and Child, Youth and Family was involved days later.
When spoken to, the woman -- who has no previous convictions -- admitted she allowed her daughter to go with the man and that she received money for it.
"She offered no explanation for her actions except to say she was remorseful and sorry."
The defendant was remanded on bail before sentencing next month.