Markets and pawnbrokers

Many people like to shop at markets, garage sales, second hand dealers or pawnbrokers. There is nothing wrong with these places but you should be wary. There is generally no voluntary or express warranty (a warranty provided by the seller or manufacturer) supplied with these goods. However, goods sold by second hand dealers or pawnbrokers must not be faulty and should perform the service for which they are sold.

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:

• a description of the goods
• the total amount lent
• any fees and charges
• interest rate charged
• equivalent annual interest rate
• an option to pay the interest monthly and what that amount would be
• if more than one item is pawned – whether they can be redeemed separately
• the name and address of the owner and any agent
• the date of the pledge
• when the redemption period ends (you must be given a minimum period of 3 months to redeem the goods)
• how the goods will be sold if they aren’t redeemed. 

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.

For more information about pawnbroking visit NSW Fair Trading website:

Pawnbroking