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The right to sell the goods

A business guarantees they have a right to sell the goods, also known as clear title.  If a third party has placed a mortgage or security on the goods, the seller has ‘limited title’. This is usually because the seller owes money to the third party.

This guarantee doesn't apply if:

  • a business tells a consumers they have limited title before selling the goods or
  • it is a private or auction sale.

Available to use

A business guarantees that no one will:

  • take back the goods
  • prevent you from using them
  • limit how you use them.

This guarantee does apply to private and auction sales.

This guarantee does not apply if:

  • the consumer does not follow the sale, hire or lease contract
  • the consumer was aware the business only had limited title or there is a security interest on the goods
  • the consumer hired or leased the goods and the hire or lease has ended.

No debts or hidden charges

A business guarantees that goods do not have any debt or hidden charges. This means businesses cannot sell goods with ‘limited title’, without telling the consumer.

This guarantee also applies to private and auction sales.

Exceptions

This guarantee does not apply if:

  • the security was placed on the goods with your approval
  • an existing security was explained and in writing before buying the goods.
Updated: 26 May 2020

This page has been produced and published by the Consumer Building and Occupational Services Division of the Department of Justice. Although every care has been taken in production, no responsibility is accepted for the accuracy, completeness, or relevance to the user's purpose of the information. Those using it for whatever purpose are advised to verify it with the relevant government department, local government body or other source and to obtain any appropriate professional advice. The Crown, its officers, employees and agents do not accept liability however arising, including liability for negligence, for any loss resulting from the use of or reliance upon the information and/or reliance on its availability at any time.