Hypotheticals by Manny Wood Published in the Coffs Coast Advocate on 4 May 2019.
Olivia, 23, has been working part-time while studying at high school and university. She has been able to save enough money to purchase her first car.
Olivia makes enquiries with her local car yards but finds that the cost of the cars are out of her price-range.
Olivia finds a vehicle on Gumtree that is within her budget and she negotiates a sale price of $5300 with a private seller.
Olivia inspects the registration papers and the seller’s drivers licence and ascertains that the seller is in fact the current owner of the vehicle.
The seller asks her to obtain a bank cheque and to come back and collect the vehicle.
Olivia is very excited about her new car, but before collecting the vehicle, she discusses the purchase with her parents.
Her parents contact their solicitor and seek advice.
The solicitor conducts a Personal Property Security Register (PPSR) search and discovers that the vehicle has money owing on it, due to a finance company.
The solicitor advises Olivia’s parents that if she had paid the seller for the car, without discharging the PPSR registration, the finance company would still be entitled to take possession of the vehicle if the seller did not pay-out the loan.
The solicitor also recommends that the vehicle is inspected, to ensure that there are no mechanical problems. A small issue with the muffler is discovered which results in the seller reducing the price and Olivia is happy to proceed with the purchase.
The solicitor makes arrangements with the seller to pay-out the finance company and obtains a PPSR discharge statement before Olivia takes possession of the vehicle.
Olivia obtains the proper insurances and transfers the vehicle registration into her name.
If you would like Manny to address a particular legal issue, send your request to manny.wood@ticliblaxland.com.au or call him on (02) 6648 7487.
