VIC Final payment for foodvan being witheld

[Angrymum]

I sold my foodvan without knowing it was encumbered from the previous owner. I received a deposit from the person I sold it to and she towed the van away.She is now withholding the rest of the payment- saying I have to remove the encumbrance before she will complete the sale. What can I do?

 

[Tim W]

What was the nature of the encumberance?
Have you been shown proof of the encumberance, (eg a copy of a PPSR entry),
or have you just had an angry phone call/ email?

What if you give her the option to back out of the deal?
For exmaple, give her back her money, take the van back, and sell it again (to somebody else),
once you know what you're doing?
(My guess, based on experience... is that you have already spent the deposit money...?)

 

[Angrymum]

Hi- apparently the previous owner used the van as collateral for his loan. The woman I sold it to is refusing to complete the sale even though I’ve offered to take the van back and return her deposit.

 

[Tim W]

Hi- apparently the previous owner used the van as collateral for his loan. The woman I sold it to is refusing to complete the sale even though I’ve offered to take the van back and return her deposit.

And you bought it without doing any diligence - such as a PPSR check?

 

[Angrymum]

Unfortunately not. Trusted the ‘friend’ when he said nothing owed on van. Never again!