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Bought & sold car under finance unknowingly - HELP

Printed From: AussieLegal
Category: Home Loans, Finance, Investment Loans
Forum Name: Home Loans, Investment Loans, Car Loans, Retirement Loans
Forum Discription:
URL: https://www.aussielegal.com.au/forum/forum_posts.asp?TID=24882
Printed Date: 17/December/2017 at 07:33


Topic: Bought & sold car under finance unknowingly - HELP
Posted By: Capitol
Subject: Bought & sold car under finance unknowingly - HELP
Date Posted: 12/November/2017 at 22:22
Hi, so I bought and sold a car which unknowingly had a finance on it. Wasn't aware of PPSR being new to the country. This was back in 2016 and used it for 5 months. After 5 months, I sold it and buyer spent an hour inspecting with a mechanic as he agreed to buy with no RWC and car was bought "as is, where is". So all was settled and transaction was completed.

More than a year later,2017, buyer comes back saying there is finance on it, this was the only time I was made aware of a PPSR check. Buyer keeps on visiting my house and saying he has spoken to a lawyer and giving me two options, either to return his money and he will return the car OR he will speak to his lawyer and make a report to the police.

My question is does he have enough legal grounds to sue me if I wasn't aware the car had finance on it? If he pursues in court do I have a strong case to win as an innocent buyer/seller or not?

Appreciate the help.



Replies:
Posted By: citizen-joe
Date Posted: 13/November/2017 at 05:03
He may have a case against you, but you in turn may have a case against the person from whom you purchased the car. Might pay to check with that person and see what they say.

Saying you were not aware of any check procedure will not wash, but the onus on checking with the second purchase was with the person who bought from you. You may escape any liability if they failed to check before handing over their money to you.


Posted By: Capitol
Date Posted: 13/November/2017 at 05:49
..


Posted By: Capitol
Date Posted: 13/November/2017 at 05:50
Originally posted by citizen-joe

He may have a case against you, but you in turn may have a case against the person from whom you purchased the car. Might pay to check with that person and see what they say.

Saying you were not aware of any check procedure will not wash, but the onus on checking with the second purchase was with the person who bought from you. You may escape any liability if they failed to check before handing over their money to you.


Hi, thanks for your response. The person who bought from me didn't do a check as well that is why the car has already been in his use for over a year already. He was already made aware of the interest as he was trying to sell the car again and a proper PPSR check was made. Now he has come back after a year trying to refund the car to me.

What do you suggest I do?



Posted By: citizen-joe
Date Posted: 13/November/2017 at 18:54
Originally posted by Capitol

What do you suggest I do?


If it was me I wait till I received a legal letter from the purchaser's solicitor. I do not believe the police will become involved.

Then I'd take that to my own solicitor for a reply.

There is a legal doctrine of Caveat Emptor which translates as "Let the buyer beware" in other words it is his responsibility to ensure that there is no encumbrance on the item being purchased.

As I tried to allude in my previous response (but not very well) if he does succeed in any action against you, then you will have the same chance of succeeding against the person from whom you purchased the car.






Posted By: Capitol
Date Posted: 14/November/2017 at 07:48
Originally posted by citizen-joe

Originally posted by Capitol

What do you suggest I do?


If it was me I wait till I received a legal letter from the purchaser's solicitor. I do not believe the police will become involved.

Then I'd take that to my own solicitor for a reply.

There is a legal doctrine of Caveat Emptor which translates as "Let the buyer beware" in other words it is his responsibility to ensure that there is no encumbrance on the item being purchased.

As I tried to allude in my previous response (but not very well) if he does succeed in any action against you, then you will have the same chance of succeeding against the person from whom you purchased the car.







Thanks for the clarification! Appreciate the help



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