Selling a car requires more than just handing over the keys and accepting payment. There are several legal requirements and considerations that every seller must follow to ensure a smooth and lawful transaction.
Here is an essential guide to navigating the legal aspects if you are planning to sell cars in Canberra.
Ownership Verification: Proving Your Rights to Sell:
Before listing your vehicle for sale, ensure that you are the legal owner. Only the registered owner listed on the vehicle's registration certificate is permitted to sell it. If you are selling a car that is under finance or has a loan, you must first pay off that loan or reach an agreement with the lender.
Key Steps:
- Check your vehicle registration to confirm it is in your name.
- If there is an outstanding loan, contact your lender to settle the balance or obtain approval to sell.
Transfer of Ownership: The Essential Paperwork:
In Canberra, transferring ownership is mandatory to make the sale legal. Both the buyer and seller need to complete all the formalities to avoid facing problems at a later stage.
Ensure that your car has a clear title, meaning it is not under any financial encumbrances, such as a loan or a lease. If the vehicle is still under finance, you must settle the loan before the sale or work with your finance company to clear the title.
Key Steps:
- Check for any outstanding debts or encumbrances on the vehicle.
- Pay off any finance agreements before finalising the sale.
Receipts and Record-Keeping:
Once the sale is complete, always provide the buyer with a written receipt that includes the details of the transaction. This should consist of the sale price, vehicle details (make, model, etc), and the names and addresses of both parties. Keep a copy for your records, as it could be helpful for future reference.
Key Details for the Receipt:
- Vehicle registration number, make, and model.
- Sale price and date of the transaction.
- Signatures of both the buyer and seller.
After the sale is complete, you must cancel your car's registration to prevent further charges. Additionally, inform your insurance provider to remove the vehicle from your policy.
These are a few simple things you must do to sell your car for cash in Canberra.
