Auctioneers, Motor Dealers and Written-off Motor Vehicles (offical notice)

Under new legislation beginning on 30 September 2002, auctioneers, motor dealers and insurance companies have some obligations when it comes to written-off vehicles:
%u2022 insurance companies no longer need to advise the Office of Fair Trading about water damaged motor vehicles;
%u2022 insurance companies must record details of vehicles that have been classified as written-off on the Written-Off Vehicle Register;and
%u2022 -auctioneers and motor dealers now need to advise buyers about written-off motor vehicles, in addition to water damaged motor vehicles.

The new legislation supports the operation of the Queensland Transport Written-Off Vehicle Register (WOVR) which records the details of vehicles that have been classified as written-off. Most Australian states and territories have a written-off vehicle register.

The new legislation supports the operation of the Queensland Transport Written-Off Vehicle Register (WOVR) which records the details of vehicles that have been classified as written-off. Most Australian states and territories have a written-off vehicle register

There are also changes to the statutory warranty provisions for written-off vehicles.

These changes are effected in the new Motor Vehicles Securities and Another Act Amendment 2002 (the Amending Act), which, in part, amends the Motor Vehicles Securities Act 1986 and the Property Agents and Motor Dealers Act 2000.

Written-Off Vehicle Register
Insurance companies and others are required to notify Queensland Transport in relation to motor vehicles that have been written-off in Queensland.


The WOVR database will record details of Queensland vehicles 15 years old and less that have been classified as written-off and will:
• enable Queensland Transport to minimise the opportunities for the illegal use of motor vehicle identification numbers in the re-birthing of stolen vehicles; and
• introduce certainty to consumers as to whether a written-off vehicle can be re-registered.

There are two types of write-offs:

Statutory write-off - The vehicle is too badly damaged to be safely repaired and is suitable only for use as parts or scrap. The vehicle's identification number (VIN)/chassis number will be recorded to identify the vehicle as a statutory write-off. This type of vehicle will never be able to be re-registered.

Repairable write-off - A repairable write-off has been determined as uneconomic to repair. The VIN /chassis number will be recorded to identify the vehicle as a repairable write-off. It will only be reregistered if it is repaired and passes a written-off vehicle inspection.

Each State's WOVR will be linked to the National Exchange of Vehicle and Driver Information System (NEVDIS) thus providing national coverage for all written-off vehicles.

WOVR and REVS Certificates
A WOVR certificate can be obtained from the Office of Fair Trading or through approved information brokers, who currently provide REVS certificates.

The WOVR certificate provides information on the writeoff status of the vehicle being purchased including the date of write-off, write-off status and the reason for the write-off (eg impact, fire).

To obtain a WOVR certificate from the Office of Fair Trading for $7.40 contact ph: (07) 3246 1599 or complete and submit a fax request form available at www.fairtradinq.gld.gov.au

Broker clients should contact their broker for more information on the WOVR certificate.

Auctioneers and Motor Dealers
Under the new legislation auctioneers and motor dealers now need to advise buyers about written-off motor vehicles.

However, under the Property Agents and Motor Dealers Act 2000 auctioneers and motor dealers must still be aware, prior to sale, of whether a vehicle is waterdamaged (i.e. appears on the REVS Register) and to ensure it is not encumbered by a security interest. To check, an auctioneer or motor dealer must undertake a search of the REVS Register.

Auctioneers and motor dealers should be aware that while security interests appearing on the Queensland REVS Register are available by searching other States' and Territories' REVS systems, information about waterdamaged motor vehicles may not be available on these systems.

An auctioneer or motor dealer may charge the buyer for the provision of a REVS certificate, but not more than $10 plus the cost of the certificate.

Written-off Vehicles
Insurance companies no longer need to notify the Office of Fair Trading about water-damaged motor vehicles written off as uneconomical to repair. These vehicles are included in the WOVR scheme and insurance companies must now advise Queensland Transport about them.

Existing records of water-damaged vehicles will remain . on the REVS Register and will continue to appear on REVS certificates.

Auctioneers Selling Water-Damaged and Written-Off Vehicles
Under the amended Property Agents and Motor Dealers Act 2000, auctioneers are required to do the following.

Water-damaged vehicles
Immediately before the auction of a water-damaged motor vehicle, the auctioneer must announce that the vehicle is in fact water-damaged.

Written-off vehicles
Immediately before the auction of an unregistered written-off vehicle, the auctioneer must announce that the vehicle is in fact written-off and state -

(a) if it is a repairable write-off , that the vehicle is a repairable write-off and must pass a written-off vehicle inspection under the Transport Operations (Road Use Management-Vehicle Registration) Regulation 1999 before it can be registered; or

(b) if it is a statutory write-off, that the vehicle cannot be registered.

When auctioning more than one repairable write-off in consecutive lots, the auctioneer may make a single announcement before the first vehicle is to be auctioned However, the auctioneer must identify all of the vehicles and make the same announcement as in (a) above.

Motor Dealers Selling Water Damaged Vehicles and Written-Off Vehicles
Under the_ amended_ Property -Agents and Motor Dealers -__. Act 2000, a motor dealer proposing to sell (not by
auction) a water-damaged motor vehicle to a buyer, before selling the vehicle, must:
1. tell the buyer that the vehicle is a water-damaged vehicle;
2. ask the buyer to sign an acknowledgement, printed in type no smaller than 12 point, that identifies the used motor vehicle as a water damaged vehicle; and 3. give the original acknowledgement to the buyer and keep a copy of the acknowledgement.

Before selling a used motor vehicle that is an unregistered written-off vehicle (other than by auction), the dealer must:

1. tell the buyer that the vehicle is a written-off vehicle and state:
(a) the vehicle is a repairable write-off that the vehicle is a repairable write-off and must pass a
written-off vehicle inspection under the Transport Operations (Road Use ManagementVehicle Registration) Regulation 1999 before it can be registered; or
(b) if the vehicle is a statutory write-off that the vehicle can not be registered.

2. ask the buyer to sign an acknowledgement, printed in type no smaller than 12 point that identifies the motor vehicle as a written-off vehicle and whether the vehicle is a repairable write-off or a statutory write-off.

3. give the original acknowledgement to the buyer and keep a copy of the acknowledgement.

Statutory Warranties
The statutory warranty provisions of the Property Agents and Motor Dealers Act 2000 do not apply to a written-off vehicle.
However, if a warranted vehicle was covered by a statutory warranty immediately before 30 September 2002, the vehicle does not stop being covered by the statutory warranty if on or after 30 September 2002 the vehicle becomes a written-off vehicle.


More information?
A complete copy of the Amending Act and other relevant legislation is available at www.legislation.gld.gov.au. Copies of the Acts and Regulations can be purchased from Goprint Bookshops, Ph: (07) 3246 3399 or 1800 679778.


More information on the Property Agents and Motor Dealers Act 2000 is available online at www.fairtrading.gld.gov.au. For other general Fair Trading enquiries, check the website www.fairtrading.gld.gov.au or contact the Office of Fair Trading on 1300 658 030.

Information on written-off motor vehicles can also be found on Queensland Transport's website at www.transport.gld.gov.au

Disclaimer:
This publication has been produced to provide guidance on the subject. It should not be regarded as rendering unnecessary detailedConsi-~f. e on of the relevant legislation, nor as being an exhaustive statement of the subject matter. It is issued subject to any changes in the relevant legislation or administrative policies.
The publication is issued on the basis that the Office of Fair Trading is not engaged in the provision of legal or other professional services to the public. The Crown and the Department expressly disclaim any liability for any omission or error which may appear and any liability arising from its use. If legal or other expert advice or assistance is required, the services of a competent professional person should be sought.

© The State of Queensland (Office of Fair Trading, an office of the Department of Tourism, Racing and Fair Trading) 2001
Copyright protects this publication. The State of Queensland has no objection to this material being reproduced but asserts its right to be recognised as author of its original material and the right to have its material remain unaltered.