Australian Capital Territory Consolidated Acts

SALE OF MOTOR VEHICLES ACT 1977 - SECT 32E

    (1)     This section applies to the purchase of a motor vehicle that is subject to a registrable interest.

    (2)     The purchaser acquires the vehicle free of the registrable interest if—

        (a)     the motor vehicle is purchased from a dealer by a non-dealer honestly and for value, whether or not the purchaser made—

              (i)     a search of the register of interests for registrable interests in the vehicle; or

              (ii)     any other search or any inquiry or inspection; or

        (b)     the motor vehicle is purchased from the debtor under the registrable interest—

              (i)     honestly and for value; and

              (ii)     without notice of the interest at the time of the payment of the purchase price; and

              (iii)     if the interest is registered—the purchaser made a proper search of the register of interests for registrable interests in the vehicle.

    (3)     However, the purchaser does not acquire the vehicle free of the registrable interest if—

        (a)     the purchaser lets, hires or supplies the goods to a person under a lease, hire-purchase agreement or other contract for the supply of the motor vehicle or purchased the vehicle with the intention of entering into a lease, hire-purchase agreement or other contract; and

        (b)     the lessee, hirer or purchaser of the vehicle under the lease, hire-purchase agreement or other contract has failed to act honestly and had notice at the time of payment of the purchase price of the registrable interest to which the vehicle is subject.

    (4)     In a proceeding it is presumed, unless the contrary is proved, that subsection (2) does not apply to the purchase if—

        (a)     the purchaser and the seller are corporations that are related to each other under the Corporations Act; or

        (b)     either the purchaser or the seller is a corporation and the other is an individual who is a director or officer of the corporation within the meaning of the Corporations Act; or

        (c)     the purchaser is a member of the same household as the seller.

    (5)     In this section, a reference to the motor vehicle being purchased from the debtor under the registrable interest includes a reference to the motor vehicle being purchased from someone else who is in possession of the vehicle in circumstances where the debtor's right to possession of the vehicle has been lost or the debtor is estopped from asserting that right against the purchaser.