26Protection of third-party interests—the Act, s 186(2)(e)

26 Protection of third-party interests—the Act, s 186(2)(e)

26 Protection of third-party interests—the Act, s 186(2)(e)

(1) This section applies to a motor dealer who agrees to—

(a) act as an agent for the sale of a second-hand motor vehicle, or

(b) accept a motor vehicle as a trade-in.

(2) The motor dealer must, before the sale or trade-in is completed, use reasonable diligence to—

(a) establish whether the vehicle is subject to a lease, hire-purchase agreement or mortgage, and

(b) if so, notify the relevant lessor, owner or mortgagee of the proposed sale or trade-in.

Maximum penalty—20 penalty units.

(3) In this section—

mortgage has the same meaning as in the National Credit Code.