If you are purchasing a vehicle through a registered vehicle dealer, they will usually handle all of the aspects of the car vehicle ownership transfer, as well as some type of guarantee regarding the vehicle’s condition. The same goes for selling your vehicle to a dealer; they will do all of the paperwork for you.
However, many people choose to buy and sell used vehicles themselves. Should you wish to buy or sell a vehicle yourself, you may wish to consider the following:
- The seller usually provides the purchaser a roadworthy/safety certificate which is done by a authorised, registered mechanic. Depending on which State you are living in, the certificate can be valid for 28 days or longer. This certificate needs to be provided to the road transport authority of your State when you are transferring ownership. It is not a comprehensive check but covers all safety aspects of the vehicle, such as brakes, etc.
- The purchaser of the vehicle may want to request a comprehensive check before making the purchase. They may wish it to be done by their own mechanic or a motoring group such as RACV. The seller is not required to agree to that.
- You can check to make sure that the vehicle you are purchasing has not been stolen, written off or is debt free. The Australian government has a website called: Personal Property Securities Register. (ppsr.gov.au). For $2 and based on the vehicle’s VIN chassis number (which you find on the road registration papers which the owner will have), you can find out if the car that you’re buying is debt free, stolen or has been written off.
- Each State has rules regarding compulsory third party (CTP) insurance requirements which also need to be provided in order for them to process the vehicle transfer into the buyer’s name. It is recommended that you research a few insurance companies for an insurance policy if you wish comprehensive insurance. If you are driving the vehicle to the Government Motor Registration office, you will need to have CTP insurance to legally drive it on the road.
- The purchaser needs to obtain a receipt from the seller (can be hand written) as to the price which was paid for the vehicle. The purchaser will need to pay a vehicle registration duty based on the purchase price.
General Checklist for Vehicle Transfer
- Safety Certificate
- Completed (by both parties) Vehicle Registration Transfer Application form obtained from Motor Registration Dept
- Sales receipt from seller
- Review insurance requirements and choose CTP insurance provider (or have CTP insurance)
- Have proof of your identify (drivers licence)
- Have proof of your address (gas/electricity bill, rates notice, phone bill)
- Each State has an online motor registry department which should provide you with all information which they require. Familiarize yourself with their requirements before attending their office to change the ownership of the vehicle.
It is at this stage that we provide a word of caution. Buying and seller online or through a platform such as carsales.com.au or Facebook marketplace have become even more popular in recent times and can be very useful if you have something to buy or sell in mind. These days, there can sometimes be a few unsavory people looking for unsuspecting sellers. This is not meant to frighten you but just to remind you that you need to take precautions with people you do not know.
It is not advisable to have a purchaser come to your private home to view your goods that you have for sale. Where possible, choose an open and safe place to meet such as in front of a police station.
If someone wishes to take your vehicle for a test drive, have only one driver at a time take it for a drive. Always sit in the vehicle with the purchaser as they take it for a drive. Take a photo of their drivers licence before allowing anyone to drive your car.
The vehicle purchaser has only 14 days in which to register the vehicle into their name. If you have any doubts that the purchaser did not lodge the necessary paperwork, you can check with the Motor Registry to make sure that the transfer has been done and that the purchaser is not incurring fines, etc. under your name after the sale is complete.
In Victoria, if the registration is not transferred by the 14 day time limit, such registration will be cancelled and the vehicle will require re-registration. When a new owner fails to comply with registration transfer laws it can become a very frustrating experience to rectify matters. Driving a motor car without appropriate registration and Third Party Liability Insurance will have serious legal ramifications by way of fines and penalties if notified or detected by the appropriate Police Force.
If the buyer does not transfer the vehicle registration as required, it is essential to:
- A: Try to contact the buyer
- B: Use a copy of the application of transfer Form to protect your interests before VicRoads.
- C: ‘Force Registration’ by VicRoads can be obtained by the seller can pride sufficient details of the purchaser and the sale. This information includes full details of the seller’s full name, date of birth, address, licence number, registration of the subject vehicle and sale price and date. If these details are available, Vic Roads should be able to process the transfer.
- D: Notify the relevant authorities in relation to the transaction.
The Legal Rules
From a legal point of view, there are a number of Laws in Victoria and the other states of Australia that relate to the rights and obligations of purchasers.
For example, the most notable and important of these in Victoria, are:
- Motor Car Traders Act 1986
- Motor Car Traders Regulations 2008
- Personal Property Securities Act 2009 (Commonwealth)
- Road Safety Act 1986
- Road Safety (Vehicles Regulations 2009).
A copy of these laws are freely available from the Internet Austlii Law Site and also by a simple Google check of the aforenamed Acts and Regulations.
More info at ltt.net.au
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