Markets and pawnbrokers
Many people like to shop at markets, garage/lawn sales, second hand dealers or pawnbrokers. There is nothing wrong with these places but you should be wary as there is generally no warranty provided by the seller or manufacturer for goods purchased at markets and garage/lawn sales.
However, goods sold by second hand dealers or pawnbrokers must not be faulty and should perform the service for which they are sold. Although the dealer has an obligation to provide a warranty on some goods, you may not be entitled to a warranty claim if you should have found a fault by examining the item before purchase. For second-hand goods you cannot expect the same warranty cover as for new goods.
Hocking or pawning goods
The law states that a record must be made of any goods pawned.
You must sign this record at the time the agreement is made and be given a copy. This record must include by law a number of points for information for example:
- a description of each of the goods to be pawned;
- the amount lent for each of the goods;
- the interest to be paid on the amount lent expressed: as a percentage rate; and as an amount in dollar terms to be paid
- for each week or month of the loan;
- the types of charges that are payable;
- the redemption period if it is longer than one month.
When hocking or pawning goods, you will need to produce proper identification and establish ownership of the goods.
If you wish to extend the loan period you must sign an agreement with the pawnbroker to do so. A record of this agreement must provide information about the new dates and fees and charges and be part of the original loan record or be attached to it.
A pawnbroker can't sell the goods until the agreed loan period of time has passed. You can redeem the goods at any time during that loan period. If the goods are not redeemed and then sold by the pawnbroker, you are entitled to any remaining money from the sale of the goods after the loan amount and other fees and charges are deducted. You may collect this money up to 12 months after the sale of the goods.