The Uncollected Goods Act 2004 (NT) outlines the process to legally dispose of a vehicle that has been abandoned on your property, whether you have undertaken repairs on the vehicle or not.
If there is an outstanding invoice, we recommend first writing to the customer requesting payment and putting them on notice that storage fees may apply in the vehicle remains on your property. Please see attached a template letter that can be used for this process (Template A).
Before you can start the process of disposing of the goods under the Act, we recommend that you determine how much the vehicle is worth. Whilst the legislation does not prescribe a particular method to value the car, we recommend having the car independently valued, particularly if you are uncertain as to its value. The method of disposal required for the abandoned vehicle will depend on its value, with different disposal requirements reflective of the vehicle’s value.
If the vehicle is less than $200, you must notify the owner of the vehicle either verbally or in writing of your intention to dispose of the goods. This can be given to the owner personally or sent to the owner’s last known address. If, after 28 days, the owner has not collected the vehicle, you may sell the vehicle via private sale or dispose of it. If the owner of the vehicle cannot be contacted or reached, you can move straight to disposing of the vehicle.
If the value is above $200, we recommend first undertaking a search on the Personal Properties Security Register (PPSR) to ensure there are no security interests registered on the vehicle. Please see ppsr.gov.au. If the vehicle does have security interests registered against it, please contact the WR team on the below contact information to discuss how to navigate this process.
If the value is above $200 but less than $1,000, you must give written notice of your intention to dispose of the vehicle to the owner and any other relevant persons. A template letter that can be used for this purpose is attached (Template B). If you have had no response after 2 months, you may dispose of the vehicle by public auction or private sale at a fair price.
If the value is above $1,000 but less than $7,000, you must give written notice (Template B) to the owner, any other relevant persons, and the Commissioner of Police. This notice must include the information outlined above. If you have had no response after 3 months, you must then place a copy of the above notice in the local Territory newspaper. If you have still had no response after 28 days, you may then dispose of the vehicle by public auction or private sale at a fair price.
If the value of the vehicle is $7,000 or more, you must apply to the Court for an order to dispose of the vehicle. This application must be provided to the provider/owner of the vehicle, any other relevant persons and the Commissioner of Police. On application to the Court, the Court may make an order to authorise the disposal of the goods and payment of the outstanding debt owed to the business.
An application with the Local Court can be done by filing either a Statement of Claim or an Originating Application with the Local Court Registry. You also have to submit a Form 16B List of Documents detailing any relevant documents you wish to rely upon in your application. Please contact us if you need assistance with your application.
On selling the vehicle, you must provide the purchaser with a receipt under the Act – see attached Receipt Form for this purpose (Receipt Form R33).
The cost of repairs and/or services that have not been paid for will take priority over any other security interest holder claiming an interest in the relevant good/s. As such, the proceeds of the sale can be put towards outstanding repairs as well as the cost of selling the vehicle. For example, the cost of advertising the sale and reasonable costs of storing and maintaining the goods before the sale. Any remaining proceeds of the sale (if any) must be paid to the Commissioner of Consumer Affairs.
If the proceeds from the sale of the vehicle don’t cover the outstanding expenses owed for repairs undertaken, you may recover these losses from the customer by filing a civil claim in the Local Court.
Within 7 days of selling the vehicle, you must also make a record of sale detailing the following:
- A description of the MV including MV number plate and VIN;
- The date the notice was given to the owner;
- Purchaser’s name. address and date of birth;
- Date of sale and sale price;
- The amount of money you kept to cover the outstanding service fees, the cost of selling the MV and how these amounts were calculated;
- The amount of money paid to the Commissioner of Consumer Affairs and the date paid.
If you have any questions regarding this process, please contact the Workplace Relations team on (08) 8291 2000 or via the form below.
