What happens if you buy something which turns out to have been stolen? Can you keep it if you paid for it in good faith? What happens if the stolen item is a car?
We previously wrote about what happens if you buy stolen goods. Since then, we have acted for several owners seeking the recovery of vehicles which had been stolen.
The law can produce a surprising result for an innocent purchaser.
If I buy stolen goods, do I become the owner?
Generally, no.
The basic rule is that a person cannot normally transfer a better title to goods than they themselves have. If someone steals your property and then sells it to an innocent buyer, the thief does not have good title to pass to the buyer.
This means that the original owner generally remains the legal owner.
That can be the case even where the buyer:
- paid a reasonable market price;
- genuinely believed the seller owned the item;
- had no idea that the item was stolen; and
- has a receipt or other evidence of the purchase.
There are exceptions to the general rule in certain circumstances, so the precise facts are important. But simply saying “I bought it in good faith” does not, by itself, mean that you become the owner.
The courts have confirmed the general principle that an owner can retain proprietary rights against a third party who purchases goods from a thief.
What happens to the innocent buyer?
This is where the situation can become particularly frustrating.
Suppose, for example:
John has his car stolen. The thief sells the car to David, who pays £15,000 for it and genuinely believes the seller is the owner.
If the car is subsequently identified, John does not normally lose his ownership simply because David paid £15,000 for it.
David may therefore have to return the car to John.
David’s potential claim will generally be against the person who sold the car to him rather than against the original owner.
What about stolen cars?
Stolen vehicles can present particular difficulties.
A vehicle may be stolen and then:
- sold to another person;
- sold several times;
- advertised online;
- registered or insured by a subsequent purchaser; and
- potentially modified or repaired before the original owner discovers where it is.
The fact that somebody has subsequently bought the vehicle does not necessarily prevent the original owner from asserting their ownership.
We have recently helped several owners recover cars which had been stolen and subsequently passed into the hands of other purchasers.
These cases can involve difficult questions about:
- who legally owns the vehicle;
- how and when it was stolen;
- who currently has possession of it;
- what documentation exists;
- what the purchaser knew or should have known;
- whether the vehicle has subsequently been sold;
- whether the police are holding the vehicle; and
- whether court proceedings are necessary to secure its return.
What if the person who has my stolen property refuses to return it?
If you are the original owner and you discover that somebody else has possession of your property, you should not assume that the matter is simply resolved because the police have been informed.
There may be a civil claim for the recovery of the property.
Depending upon the circumstances, it may be necessary to seek an order requiring the person in possession to deliver the property up.
This is particularly important where the person currently holding the property believes that they are the rightful owner because they purchased it from somebody else.
What if I have bought something which turns out to be stolen?
If you are the purchaser, the position is different.
You may have a claim against the person who sold the goods to you. The seller is generally required to have the right to sell the goods. If that turns out not to be the case, the purchaser may have a claim for a refund or other remedy.
The difficulty, of course, is that the seller may have disappeared, may have used a false identity, or may not have the money to repay you.
That is why buying expensive goods privately or through online marketplaces can carry significant risks.
We have helped owners recover stolen cars
We have recently acted for several owners who discovered that their stolen vehicles had subsequently been sold to other people.
Obviously for this to happen the original owner has to locate the vehicle. In a recent case the original owner located his vehicle when the manufacturer’s tracker was re-activated.
We have acted for several classic car owners where classic cars have been stolen and subsequently appeared at classic car shows or on classic car forums.
If your car or other valuable property has been stolen and you subsequently discover that it has been sold or is in somebody else’s possession, we can advise you on your legal position and the steps available to recover it.
Hastings & Co Solicitors are based in Essex and specialise in litigation and dispute resolution.
Contact Liam Hastings on 01621 876 031 or by email on liam@hastingsandco.co.uk.