so is work done on a vehicle that you just bought that the previous owner didnt pay for, fully your problem to pay for now? If so, where in the law is this specified? Im not in this situation but after reading a warning I want to know if its a fact or not some law in another country or made up by those in the business.
When ya been aroond ya ALWAYS buy ! Free of all and any incumberances!
Or ! Totally unemcumbered!
And maken zemm a sign zee recipt.
Encumbrance
A burden, obstruction, or impediment on property that lessens its value or makes it less marketable. An encumbrance (also spelled incumbrance) is any right or interest that exists in someone other than the owner of an estate and that restricts or impairs the transfer of the estate or lowers its value. This might include an Easement, a lien, a mortgage, a mechanic's lien, or accrued and unpaid taxes.
sw20,
Jul 14, 4:22pm
The contract begins and ends with the person who authorised the work. Unless of course this workshop took out a registered security interest in the vehicle before undertaking the work.
Encumbrance is for property in New Zealand.
nice_lady,
Jul 14, 5:02pm
Yep I'd say someone trying to charge you for work authorised by a previous owner would be pushing that one up a very steep hill !
In that circumstance I'd be saying "NO" and that would then make it a disuputed debt - but there's no debt because YOU didn't request nor did you authorise the work.
saxman99,
Jul 14, 6:32pm
"Nothing to do with me, see you in court."
mrfxit,
Jul 14, 6:33pm
Debt contracts . Theres not any "items" or many ways in NZ that have work done on them that also carry the debt on to the new owners. Finance companys can retain "ownership" of property Someone that has legally placed a "Lien" can sue for the return of that item or payment of that debt. The courts of course can recover items or payment for debt from the owner of that debt & sometimes from the "new" owner on behalf of the original owner.
Each "contract" has a specific type of item that it applies to. Theres a lot of twists & turns in the financial & legal world with plenty of exceptions & restrictions. Theres a basic list but after that, it gets tricky.
mrfxit,
Jul 14, 6:34pm
Gets sticky with the courts if the new owner is known or related to the original debt owner
supernova2,
Jul 14, 11:46pm
It could be possible for the vehicle to be the subject of a registered security agreement in respect of work done. Not very common though but easy to check the PPSR
kazbanz,
Jul 15, 7:33am
In simple terms. An encumbrance CAN be put on a vehicle by a workshop. It is your responsibility/in your best interest to check if there is one BEFORE paying the "owner" . The vehicle CAN be repo'd by the company that put the security over the vehicle. The vehicle has been used as collateral for a loan of some sort
kazbanz,
Jul 15, 6:22pm
Sorry--you are wrong. Although a lot of personal property can no longer be used as security for a loan a motor vehicle can. The easy way to look at it is - In the case the OP outlines There were actually TWO transactions between the last owner and the workshop. One transaction was to get the car repair work carried out. The second was to take out a loan and use the vehicle as the registered security. So if the repo guy turns up at your doorstep he can take the car (or the money) This is why you do not ever pay for a car until you have checked the security register. Then RIGHT AWAY you do change of registered owner into your name. There is legal precedent where a security was registered over a vehicle after the c of o was done and the security was forced to be removed.
nice_lady,
Jul 15, 6:47pm
Wouldn't matter if the new owner knew the old owner surely ? As for related - well your'e not generally responsible for someone elses debts unless married possibly ?
nice_lady,
Jul 15, 6:50pm
No I'm not wrong. Even if there is a security interest registered on the vehicle that doesn't allow anyone to charge YOU for the debt. They may be able to reposses the collateral, (the vehicle in this case), and that would essentially be a cost to you, (unfortunate), but they cannot find YOU legally obilgated for the debt.
Edit: Yes you could pay the debt in order to retain the asset, but they can't make you as you are not the liable party you are simply the unfortunate mug who's purchased the asset which was used as collateral. In the circumstance that you refuse to pay they can indeed take the asset. Unfortunate.
mrfxit,
Jul 15, 7:13pm
Many many cases where the courts are about to seize a vehicle for dept payment & the owner transfers the ownership top a mate/ relation for "safe keeping" before the day in court.
elect70,
Jul 15, 11:54pm
There have been instances of garage repoing car even after it was sold by the owner for large debts owing to the garage . Owners had to fight through court to get it back . Same with cars sold on dealers lots on behalf . Finance co seizes the lot & owners have to fight to get them back when dealer goes under .
kazbanz,
Jul 16, 12:05am
Um isn't tha a long winded way of saying yea im wrong? Either pay the debt or loose the vehicle. OR the easy way is to do a security check BEFORE paying up for the car in the first place.
kazbanz,
Nov 24, 9:43am
Again--IF the security was lodged AFTER C of O was done then the result will be that the creditor ends up whistling dixy. That's one reason the PPSR can't be "fiddled" date wise.
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