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.
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