NSW Selling a vehicle with different name registered NSW

[Shay21]

I would like to know: "if a person has what they call "title" of a car and it is registered in someone elses name, can that person legally sell or take the car without the others permission.

To help clarify here is the scenario:

(Names have been substituted for privacy reasons)

Bob purchased a car on finance via a finance company. A few years later, bob obtained a personal loan via a bank which then paid out the car loan. The personal loan was not secured so the car is free of any financial obligation. A title was issued to bob for the car, once it had been paid out from the car finance company. Bob then gave the vehicle to his ex partner as a contribution to the children they shared and therefore the car was registered in bobs ex partners name. Bob now wants to take the car and sell it, however bobs ex partner is not sure that he can legally do that seen as it is registered to her. This is in NSW.

Can Bob do this?

 

[Tim W]

Can Bob do this?

If it's registered in your name then, prima facie, it's yours.

Going only by what you have said here, missing facts missing and with all the
unstated ifs, buts, and maybes not allowed for,
I do not see how the car, if it was either a plain and ordinary gift, or
a payment in kind* of Child Support** can now be "Bob's" to now sell.

There are two things you should do urgently:

• get yourself some sort of steering wheel lock to stop him stealing it anyway; and
• make a visit to, say, a Community Legal Centre, where you can discuss this properly

One other thing, which is not urgent, but may help later is to talk to the police and ask them if they will put a "Warning" or an "Intel" on the vehicle (they'll know what those terms mean), in the event that he nicks it.

----------------------------------
* Payment In Kind means a thing rather than a bunch of cash to buy the thing with.
** Even if it wasn't formally recorded at the time, and even if it's been mis-described as a "gift".

 

[Shay21]

If it's registered in your name then, prima facie, it's yours.

Going only by what you have said here, missing facts missing and with all the
unstated ifs, buts, and maybes not allowed for,
I do not see how the car, if it was either a plain and ordinary gift, or
a payment in kind* of Child Support** can now be "Bob's" to now sell.

There are two things you should do urgently:

• get yourself some sort of steering wheel lock to stop him stealing it anyway; and
• make a visit to, say, a Community Legal Centre, where you can discuss this properly

One other thing, which is not urgent, but may help later is to talk to the police and ask them if they will put a "Warning" or an "Intel" on the vehicle (they'll know what those terms mean), in the event that he nicks it.

----------------------------------
* Payment In Kind means a thing rather than a bunch of cash to buy the thing with.
** Even if it wasn't formally recorded at the time, and even if it's been mis-described as a "gift".

 

[Shay21]

Thank you Tim for your reply. This was my initial feeling also. I have also contacted the police who have verified that being that the registration is in the ex partners name, Bob could not legally take the car from her. However, bob seems to be convinced that as he was issued the title that therefore he is the owner of the vehicle and he would have no issue selling the car. Of course, the fact that he has an equitable claim to the car is not of question, however he would have to commence court proceedings for this, and therefore could not just remove the car from her possession, is my understanding. Would this be correct? im happy to porvide extra or missing facts if it helps, as he plans to tkae the car from her within the next few days.

 

[Rod]

What equitable claim?

A gift is a gift is a gift. Alternatively the car was offered and accepted as payment in lieu of other debts.

Can't see an equitable claim here.

If car is taken, report it as stolen. The advice to the other party should be the same. Put him on notice the car will be reported as stolen if he takes it.

 

[Shay21]

Thank you Rod. His equitable claim would come from the circumstances that he provided the funds for the car and claiming that due to him having the title of the vehicle issued from the finance company, he has every right to ownership and therefore can do what he wants with the car. However, i am aware that a court would have to establish this so he cannot just turn up, take the car and then wait till what the court says, or can he? This is where the waters get murky i suppose. The main issue would be then, in the event that legal proceedings would have to commence to establish his claim of ownership, what right does he have to the car in the meantime? I find it unlikely that he can just put the car up for sale, and take possession of the vehicle until a court has established that he has that right, however i am not to sure how correct that would actually be. If he has a legal claim to the car (which he claims he has ownership and therefore establishes that claim) then i dont think it could be reported as stolen in the event that he took it. Bit of a nightmare really.

 

[Tim W]

Of course, the fact that he has an equitable claim to the car....

I see no equitable interest here.