If someone left their goods with you, you must give them a certain amount of notice depending on the value of the goods before you are allowed to dispose of them. If you don’t give notice, the other party can take legal action against you.
You can find out the value of the goods by:
- the price of second hand goods that are in similar type, quality and condition
- expert report from a valuer or valuation certificate
- insurance documents
- receipts, credit card statements or evidence of electronic payment.
| Type of goods | Amount of notice required | How goods can be disposed after the relevant notice |
|---|---|---|
| Rubbish and perishables (for example, food items) | Notice is not required | Can be disposed of immediately |
| Personal documents (for example, a birth certificate) | At least 28 days written notice to the owner of the goods | Must either be returned to the authority who issued the document, or securely destroyed |
| Goods worth less than $1,000 | At least 14 days verbal or written notice to the owner of the goods | Can be disposed in any way |
| Goods worth between $1,000 and $20,000 | At least 28 days written notice to the owner of the goods | Can be sold at a public auction. Keep a record of the sale and send proceeds to Revenue NSW |
It is important to keep a record of the written notice in case there is a dispute.
You will need to apply to the NSW Civil and Administrative Tribunal (NCAT) if the goods are worth over $20,000.
If you want to dispose a motor vehicle, you need to get a certificate from the police that the car is not stolen and a written search from the Personal Property Securities Register to show there is no finance owing.
Once you have these documents you must follow the notice requirements before you can dispose of the vehicle. See Giving notice before disposing the goods above.
A letter of demand is a letter from the other party asking you to return their goods or pay you the money value of the goods. It often warns you that if this is not done they may start a case in the NSW Civil and Administrative Tribunal (NCAT).
When you receive a letter of demand, this might be the first time you find out that someone wants their goods back.
The letter may be sent by registered post or email. The demand can also be made over the phone or in person.
A letter of demand will usually state:
- what goods the other party wants back
- whether the other party will accept payment for the goods rather than their return
- how much the goods are worth
- what the other party will do if you don't return the goods or pay the value of the goods
- the date by which they want the goods or money.
You can respond to the letter of demand by:
- agreeing to return the goods and making an arrangement
- offering to pay money instead
- denying that the goods belong to them
- asking for more information about the goods or their value
Sample: Response to letter of demand – goods
Sample: Request for more information – goods
When the other party receives your response, they will decide whether to accept your offer, put a counter-offer or apply to NCAT.
You can try to resolve your dispute by negotiating directly with the other party. You can negotiate in person or in writing. If you are negotiating in writing, and making a settlement offer, you should write the words ‘Without prejudice’ at the top. This means that your offer can’t be used against you if you end up in the Tribunal or the Court.
If you need help negotiating, you could arrange for an independent person to assist you both through a process called 'mediation'. A mediator can help parties talk to each other and come up with a solution.
Mediation is a free service offered through Community Justice Centres. For more information, see What is mediation? on the Community Justice Centres website.
If you reach an agreement, and you want the agreement legally binding, you should put it in writing as ‘Terms of settlement’ or ‘Settlement agreement’. There is no set form.
The agreement can include:
- a description of the goods to be returned, or the amount of money to be paid instead
- when the goods will be returned or the money paid
- how the money will be paid, for example by cheque, cash or electronic funds transfer
- the payment of interest on the amount agreed to be paid
- payment by instalments and the dates the instalments are due
- what will happen if the good are not returned, or the amount or the instalments are not paid by the agreed date.
If you are unable to resolve your dispute with the other party, you can apply to the NSW Civil and Administrative Tribunal (NCAT) for an order.
NCAT can make an order for:
- removal or disposal of the goods
- delivery of the uncollected goods
- sale of the uncollected goods
- payment of compensation.
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