For a variety of reasons, items that are clearly not included in the contract (such as a motor vehicle or personal items and documents) may be left behind by the vendor. The purchaser does not have legal ownership of these items and should contact the vendor and insist that the items be removed. If this proves difficult it may be easiest to deliver the items to the vendor although advice should first be obtained.

If the vendor does not collect the items, it may be necessary to proceed under the Unclaimed Goods Act 1987 (SA) which sets out a lawful process for their sale or disposal.

Unclaimed goods

Under the Unclaimed Goods Act 1987 (SA), items left by vendors on the date of settlement are considered unclaimed goods because the vendor has not taken the items as agreed [s 5].

The purchaser needs to give the owner a certain amount of notice before they are legally able to sell or dispose of the items. The purchaser must hold onto the items for the relevant ‘holding period’ (which varies according to the type and value of the items).

Motor vehicles [s 5A]

Where the unclaimed good is a motor vehicle, or includes a motor vehicle, the purchaser must search the Personal Property Securities Register (ppsr.gov.au) to identify anyone who has a registered interest and provide notice to all those with an interest.

Goods including motor vehicles valued at $1,000 or less can be kept, disposed of or sold if not collected within 14 days after a disposal notice is given. The purchaser may do what they choose with the goods because at the end of the holding period legal ownership of the goods was transferred to the purchaser.

Goods including motor vehicles valued at $1,001 to $19,999 can be sold by public auction, by private sale for fair value or with the authority of the Magistrates Court if not collected within 28 days after a disposal notice is given.

The purchaser must seek a court order before they can sell a motor vehicle valued at $20,000 or more if not collected within 60 days after a disposal notice is given [s 6A(4)(b)].

Other goods [ss 6, 6A]

Goods valued at $200 or less can be kept, disposed of or sold if not collected within 14 days after a disposal notice is given. The purchaser may do what they choose with the goods because at the end of the holding period legal ownership of the goods was transferred to the purchaser.

Goods valued at $201 to $19,999 can be sold by public auction, by private sale for fair value or with the authority of the Magistrates Court if not collected within 28 days after a disposal notice is given.

The purchaser must seek a court order before they can sell goods valued at $20,000 or more if not collected within 60 days after a disposal notice is given.

Personal documents [s 6B]

Personal documents include birth certificates, passports, identity documents, legal documents, documents containing personal financial or medical information, licences, and personal photographs.

Personal documents must not be sold. Personal documents may only be securely destroyed if not collected within 28 days after a disposal notice is given.

Rubbish and perishable goods [s 6C]

The purchaser may dispose of rubbish without giving any notice.

If the goods left are perishable or likely to cause a risk to the health or safety of a person, the purchaser should give notice (orally or in writing) to the vendor that they intend to dispose of these goods. The goods may be disposed of after a reasonable period of time (having regard to the nature and condition of the goods).

Selling or disposing of goods

An application to court for authorisation to dispose of unclaimed goods will usually be made to the Magistrates Court unless the value of the goods is greater than $100,000. In those circumstances, an application must be made to the District Court or the Supreme Court.

If the purchaser sells unclaimed goods valued at $200 or less, or $1,000 or less if the goods included a motor vehicle, they can keep all proceeds of sale.

If the purchaser sells unclaimed goods valued at $201 or more, or $1,001 or more if the goods included a motor vehicle, they can keep any reasonable costs which may be deducted from the proceeds of sale and the balance must then be paid to the State Treasurer [s 8(1)]. The Treasurer may then pay money to a claimant who had an interest in the sold unclaimed goods.

If the goods are disposed of without following the procedures under the Unclaimed Goods Act 1987 (SA), the owner may take legal action against the purchaser. It is therefore important to follow the correct procedure.

For more information, see our Unclaimed goods factsheet.

Different rules apply to goods abandoned by a tenant at a residential tenancy – see Finalising a tenancy.