The place to access your Free Legal Rights Information

Motor Dealers and Chattel Auctioneers Act 2014 – 1 December 2014

Download PDF

Motor Dealers and Chattel Auctioneers Act 2014 – 1 December 2014

Motor Dealers and Chattel Auctioneers Regulation 2014 – 1 July 2015

Quick to view summary

A person who wishes to obtain a motor dealer licence or chattel auctioneer licence may apply in the approved form to the government. For licence elaborations, refer to section 76 of the Act (for motor vehicle licence) and section 122 of the Act (for a chattel auctioneer licence). For suitability requirements, refer to sections 21 and 22 of the Act. For eligibility requirements, refer to section 32 of the Act (for motor dealer licence) and section 33 of the Act (for chattel auctioneer licence). Note: Licence renewals are to be applied for prior to licence expiry. A licence renewal application is to be in the approved form and is to be accompanied by: an audit report for all trust accounts kept by the licensee during the relevant audit period or a statutory declaration by the licensee that the licensee did not operate a trust account. If a person’s licence expires, the person may apply for restoration of the licence (within 3 months of licence expiry). It is important to note that a licence cannot be transferred. A licence may be issued for a 1 year or 3 year term.

  • Sections 14, 15, 16, 17, 18, 19, 21, 22, 23, 32, 33. 36, 39, 40, 41, 42, 43, 46, 49, 50, 64, 65, 66, 69, 71, 76, 77, 78, 79, 117, 119, 121, 122, 123, 124, 148, 149, 191; Regulations 3, 4, 12, 13, 31, 32, 33, 45

A licensee must not publish, or permit to be published, in a newspaper or elsewhere an advertisement for the licensee’s business without stating in the advertisement the particulars prescribed under a regulation.

  • Section 72

When buying a motor vehicle or accepting a motor vehicle for sale on consignment in the course of carrying on the licensee’s business, the licensee must (in most instances) obtain from the seller a statement, signed by the seller, stating the particulars about the seller and the vehicle. For the definition of ‘motor vehicle’, refer to section 12 of the Act. For the definition of ‘consignment’, refer to the Schedule 3 dictionary.

  • Sections 9, 12, 73, Schedule 3; Regulation 7

A licensee must, immediately after selling a motor vehicle in the course of carrying on the licensee’s business, give the buyer a statement, signed by the licensee, stating the particulars prescribed under a regulation about: the vehicle; and the vehicle’s owner immediately before the sale. Note: Nothing in this section prevents the statement being contained in the contract for sale of the vehicle. For the operative regulation in relation to prescribed particulars, refer to regulation 8 of the Motor Dealers and Chattel Auctioneers Regulation 2014.

  • Section 74; Regulation 8

If a person agrees to purchase a motor vehicle from, or sell a motor vehicle to, a motor dealer, the person must sign a written acknowledgement stating the motor dealer disclosed to the person that the motor dealer is a licensed motor dealer.

  • Section 80

In most instances, a motor dealer must not act as a motor dealer to sell a client’s motor vehicle on consignment unless the client first appoints the motor dealer in writing. For the definition of ‘sell’, refer to the Schedule 3 dictionary. For content requirements for an appointment, refer to section 82 of the Act. A motor dealer appointment must be in the approved form and include a prominent statement that the client should seek independent legal advice before signing the appointment. Further, the appointment must be signed and dated by the client and the motor dealer. Note: The motor dealer must give a copy of the signed appointment to the client immediately after it is signed. A proper appointment is a pre-requisite to suing/recovering a reward or expense. For the definition of ‘reward’, refer to the Schedule 3 dictionary.

  • Sections 9, 81, 82, 83, 84, 88, 89, Schedule 3

A motor dealer must not accept a trade-in from the buyer of a motor vehicle being sold on consignment.

  • Section 86

A motor dealer who sells a motor vehicle on consignment must not claim commission worked out on an amount that is more than the actual sale price of the vehicle.

  • Section 87

A motor dealer/motor salesperson commits an offence if the dealer/salesperson obtains from the owner of a used motor vehicle, other than another motor dealer, an option to purchase the vehicle in which the dealer/salesperson has a beneficial interest or otherwise obtains a beneficial interest in the vehicle. There may not be a contravention however if before a contract for the sale of the motor vehicle is entered into, the dealer/salesperson obtains the client’s written acknowledgement in the approved form that the client: is aware that the person is interested in obtaining a beneficial interest in the motor vehicle and consents to the person obtaining the interest; and no commission or other reward is payable for the sale (along with other conditions being met). For the definition of ‘beneficial interest’, refer to section 10 of the Act. For the definitions of ‘option to purchase’ and ‘used motor vehicle’, refer to the Schedule 3 dictionary.

  • Sections 9, 10, 91, 92, 93, Schedule 3

Before the motor dealer sells an unregistered written-off vehicle to the buyer (other than by auction), the motor dealer must tell the buyer that the vehicle is a written-off vehicle and state: if the vehicle is a repairable write-off—that the vehicle is a repairable write-off and must pass a written-off vehicle inspection under a regulation under the Transport Operations (Road Use Management) Act 1995 before it can be registered; or (b) if the vehicle is a statutory write-off—that the vehicle cannot be registered. The motor dealer must also ask the buyer to sign an acknowledgement that: identifies the used motor vehicle as a written-off vehicle; and states whether the vehicle is a repairable write-off or statutory write-off. The motor dealer must give the original of the acknowledgement to the buyer.

  • Section 95

A contract for the sale of a used motor vehicle by a motor dealer must state that the responsible licensee guarantees that the buyer will have clear title to the vehicle when property in the vehicle passes to the buyer. If the contract does not comply, the buyer by written notice given to the selling agent may avoid the contract. The notice must be given to the selling agent within 7 days after the day property in the vehicle passes to the buyer.

  • Sections 96, 97

A motor dealer must not (in most instances) advertise or display for sale a motor vehicle for sale on consignment unless it is advertised or displayed for sale as a vehicle that is not subject to a cooling-off period in the way provided under a regulation. For the operative regulation in relation to advertisement/display, refer to regulation 9 of the Motor Dealers and Chattel Auctioneers Regulation 2014.

  • Section 101; Regulation 9

If a used motor vehicle is not subject to any prior contract with a prospective buyer for its sale, a motor dealer must give to the prospective buyer of the vehicle a written statement in the approved form complying with section 102 of the Act. The statement must include: a clear statement that the prospective buyer may avoid any contract for the purchase of the vehicle from the motor dealer during the cooling-off period; and the day and time the cooling-off period ends (among other things). The statement must be signed and dated by the prospective buyer and the motor dealer. The motor dealer must give the original of the statement to the prospective buyer immediately before the buyer signs any contract for the purchase of the vehicle. Note: No statement or a defective statement gives the buyer contract avoidance rights pursuant to section 104 of the Act (which may be exercised within 7 days after the day property in the vehicle passes to the buyer). For the definition of ‘used motor vehicle’, refer to section 98 of the Act. For the meaning of ‘cooling-off period’, refer to section 99 of the Act. For instances where the cooling-off period does not apply, refer to section 100 of the Act.

  • Sections 98, 99, 100, 102, 104

If a used motor vehicle is subject to a prior contract with a prospective buyer that is not immediately enforceable, the motor dealer may give not more than 1 other person an option to purchase the vehicle even though the vehicle is subject to a prior contract. The motor dealer must give the option holder a written statement complying with section 103 of this Act. The statement must include: the option to purchase is conditional on a prior contract for the sale of the vehicle being avoided by the buyer under the prior contract; and the option holder has no legally enforceable rights under the option to purchase the vehicle, unless the prior contract is avoided; the amount of non-refundable deposit forfeited by the option holder if the holder declines to enter into a contract for the purchase of the vehicle for any reason other than because the prior contract was not avoided (among other things). The statement must be signed and dated by the option holder and the motor dealer. The motor dealer must give the statement to the option holder immediately before the option holder signs the option to purchase the vehicle.

  • Sections 103, 107, 112; Regulation 10

A contract for the sale of a used motor vehicle by a motor dealer must contain a clause clearly headed ‘COOLING-OFF PERIOD’ which complies with section 105 of the Act. Non-compliance will allow the buyer to avoid the contract (within 7 days after the day property in the vehicle passes to the buyer). If the contract is avoided during the cooling-off period (as per next paragraph), the deposit paid is to be returned to the buyer, less the non-refundable deposit. For what constitutes the ‘non-refundable deposit’, refer to section 106 of the Act and regulation 10 of the Motor Dealers and Chattel Auctioneers Regulation 2014.

  • Sections 105, 106, 109, 113; Regulation 10

The buyer of a used motor vehicle may avoid the contract to purchase the vehicle during the cooling-off period. A buyer of a used motor vehicle who wishes to avoid the contract to purchase the vehicle must give the motor dealer or a person apparently working for the motor dealer at the motor dealer’s place of business a written notice indicating that the buyer terminates the contract. The notice must be given before the cooling-off period ends. This notice brings the contract, and any related contract, to an end. A ‘related contract’ includes: a contract about the provision of finance to purchase the vehicle; and a contract of insurance for the vehicle.

  • Sections 110, 111, 112

Schedule 1 provides for a statutory warranty for warranted vehicles sold by a motor dealer/chattel auctioneer in particular circumstances. For the definition of ‘warranted vehicle’, refer to section 3 of Schedule 1. For an explanation of the ‘warranty period’, refer to section 4 of Schedule 1. For an explanation of when the Schedule applies, refer to section 5 of Schedule 1. Pursuant to section 6 of Schedule 1: A licensee who sells a warranted vehicle must give the buyer of the vehicle a notice in the approved form before a contract for its purchase is entered into (for non-auction sale). The buyer must acknowledge receipt of the notice by signing a copy of it. For the definition of ‘statutory warranty’, refer to section 7 of Schedule 1. An exercise of warranty by the buyer is pursuant to section 9 of Schedule 1.

  • Sections 115, 145, Schedule 1, sections 3, 4, 5, 6, 7, 8, 9, 11, 12, 13; Regulation 47

A motor dealer/chattel auctioneer may advertise or display for sale an unwarranted vehicle only if it is advertised or displayed for sale, in the way provided under a regulation, as a vehicle that does not have a statutory warranty. Note: This rule does not apply to an unwarranted vehicle that is a caravan, a commercial vehicle or a motorcycle. For the operative regulation in relation to advertising/display, refer to regulation 11 of the Motor Dealers and Chattel Auctioneers Regulation 2014.

  • Sections 9, 116, 146, Schedule 3; Regulation 11

A motor dealer must ensure that a contract for the sale of a motor vehicle by the motor dealer: (a) is in writing; and (b) contains the particulars prescribed under a regulation in the way prescribed under the regulation. The motor dealer must give 1 copy of the contract to each other person signing the contract immediately after it is signed. Note: A contract for the sale of a motor vehicle by a motor dealer that is not in writing is not enforceable against the buyer of the motor vehicle.

  • Section 118

A motor dealer must not act for more than 1 party to a transaction. If the motor dealer acts for more than 1 party to a transaction, an appointment to act for a party to the transaction is ineffective from the time it is made.

  • Section 120

In most instances, a chattel auctioneer must not act for the client unless the client first appoints the chattel auctioneer in writing. The content requirements for the appointment are set out in section 126 of the Act. The appointment must be in the approved form and must include a prominent statement that the client should seek independent legal advice before signing the appointment. An appointment not in the approved form is ineffective from the time it is made. The appointment must be signed and dated by the client and the chattel auctioneer. The chattel auctioneer must give a copy of the signed appointment to the client immediately after it is signed. A proper appointment is a pre-requisite to suing/recovering a reward or expense.

  • Sections 125, 126, 127, 128, 132, 133, 134

A chattel auctioneer must not charge the buyer of goods a buyer’s premium unless: (a) the chattel auctioneer before the auction, obtains the written consent of the owner of the goods; and discloses, in the way prescribed under a regulation, that a buyer’s premium is payable on the purchase of the goods; and (b) the premium is not more than the amount prescribed or worked out under a regulation. For the definition of ‘goods’, refer to the Schedule 3 dictionary. For the operative regulation in relation to buyer’s premium, refer to regulation 6 of the Motor Dealers and Chattel Auctioneers Regulation 2014.

  • Sections 9, 130, Schedule 3; Regulation 6

A chattel auctioneer must not claim commission worked out on an amount that is more than the actual sale price of the goods.

  • Sections 131, 134

The chattel auctioneer commits an offence if the chattel auctioneer obtains from the client an option to purchase the goods in which the chattel auctioneer has a beneficial interest or otherwise obtains a beneficial interest in the goods. There may not be a contravention however if before the earlier of the auction of the goods or contract for the sale of the goods is entered into, the chattel auctioneer obtains the client’s written acknowledgement in the approved form; and no commission or other reward is payable for the sale (along with other conditions being met). For the definition of ‘beneficial interest’, refer to section 10 of the Act.

  • Sections 10, 136, 137, 138, 139

A chattel auctioneer must announce, immediately before the auction of a motor vehicle that is an unregistered written-off vehicle, that the vehicle is a written-off vehicle and state: (a) if the vehicle is a repairable write-off—that the vehicle is a repairable write-off and must pass a written-off vehicle inspection under a regulation under the Transport Operations (Road Use Management) Act 1995 before it can be registered; or (b) if the vehicle is a statutory write- off—that the vehicle cannot be registered.

  • Section 141

A contract for the sale of a used motor vehicle by a chattel auctioneer must state that the responsible licensee guarantees that the buyer will have clear title to the vehicle when property in the vehicle passes to the buyer. If the contract does not comply, the buyer, by written notice given to the selling agent may avoid the contract. The notice must be given to the selling agent within 7 days after the day property in the vehicle passes to the buyer.

  • Sections 142, 143

A chattel auctioneer must announce, immediately before the auction of any unwarranted vehicle, that the vehicle does not have a statutory warranty.

  • Section 147

In most instances, a chattel auctioneer must not act for more than 1 party to a transaction. If a chattel auctioneer acts for more than 1 party to a transaction, an appointment to act for a party to the transaction is ineffective from the time it is made.

  • Section 150

A person who wishes to obtain registration as a motor salesperson may apply in the approved form to the government. For suitability requirements, refer to section 157 of the Act. For eligibility requirements, refer to section 165 of the Act. If granted, a registration certificate is issued. Note: Renewal applications may only be made prior to registration certificate expiry. If a person’s registration certificate expires, the person may apply for restoration of the certificate (within 3 months of the registration certificate expiry). It is important to note that a registration certificate may not be transferred. A registration certificate may be issued for a 1 year or 3 year term.

  • Sections 151, 152, 153, 154, 155, 157, 158, 165, 166, 167, 168, 171, 174, 175, 183, 184, 185, 188; Regulations 3, 5

A person who is aggrieved by a person’s conduct may apply to the District Court for an injunction. The court may grant an injunction if satisfied that the person has engaged, or is proposing to engage, in conduct that constitutes or would constitute: a contravention of this Act or a prescribed conduct provision; or attempting to contravene this Act or a prescribed conduct provision, etc. For information regarding the prescribed conduct provision, refer to regulation 19 of the Motor Dealers and Chattel Auctioneers Regulation 2014.

  • Sections 94, 140, 204, 205, 206, 207, 208; Regulations 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30

A licensee or motor salesperson must not represent in any way to someone else anything that is false or misleading about the sale or auction of goods. For the definition of ‘representation’, refer to the Schedule 3 dictionary.

  • Sections 9, 216, 217, Schedule 3

A person must not wilfully represent in any way to someone else anything that is false or misleading about the total distance travelled by a motor vehicle.

  • Section 218

A licensee or a motor salesperson must not charge a fee for the provision, preparation or completion of a document that is authorised or required to be provided, prepared or completed under the Act.

  • Section 220

Nothing in this Act affects or limits any civil remedy that a person may have against a licensee or another person for any matter.

  • Section 232
Reason for law

The main object of this Act is to provide a system for licensing and regulating persons as motor dealers and chattel auctioneers and for registering and regulating persons as motor salespersons that achieves an appropriate balance between: (a) the need to regulate for the protection of consumers; and (b) the need to promote freedom of enterprise in the market place. (Section 8)

Relevant links

Motor Industry [Office of Fair Trading]

Check a licence

Split of the Property Agents and Motor Dealers Act 2000

Critique

The heading of section 218 contains the term ‘mileage’. This term may be replaced with a modern alternative.

Advertising

APL-advertising-500

× Note: Advertising on this webpage does not indicate that the entity advertising has any specialist expertise or accreditation. If specialist expertise or accreditation is promoted by the advertiser, they will have provided such information in their logo with no involvement from Access Point Law. It is expressly made clear that Access Point Law does not guarantee any level of expertise or accreditation of any advertiser and does not guarantee the accuracy of advertising information. You are encouraged to make your own enquires.

The author expressly disclaims all liability for loss or damage arising from your use or reliance on advertising information published at any time on this website.

Disclaimer: The information published on this webpage has been provided free for the benefit of the public and does not act as advice to any individual or other entity. If you require advice relating to your situation, go visit your professional adviser. The author and any third party advertising on this webpage expressly disclaim all liability for loss or damage arising from your use or reliance on the information published at any time on this webpage.

PLEASE NOTE: The information published on this webpage may be out-of-date. Please compare the currency date of the Act/Regulation against that published on the Office of the Queensland Parliamentary Counsel website. If you require access to Commonwealth statute law, please visit the ComLaw website. If you require access to the local council laws (by-laws), please visit the Local laws database.

Featured image from Flickr Commons – https://www.flickr.com/photos/statelibraryqueensland/5682302788/

APL-SS BULLETINGLOBAL LAW PROGRAM LOGO

Access Point Law | ABN 85 103 203 656
Copyright 2015 Andrew Bird