Buying a car with money owing, what's my options?

[jaydee]

The daughter and I checked out a car for her and it fitted the bill, air bags, ABS, low kays for a 4 cyl car 10 years old.

Anyway it was going for $7500, got him to $7250. Put a $250 deposit cheque on it to pick it up next weekend and pay the balance. He wants the chq made out to his girlfriend who we don't even see.

Get home, do a REVs check and it says it has money owing. Rang the guy and asked him, "Whats the go?". He said he will use my deposit chq to put towards whats owing and it should be clear by the end of the week. :

I'm really glad I only put down $250, but I'm getting a bit nervous so I was just wondering if anyone else has had experiences like this. Can I demand a letter from whoever has money owing on it to say it's all clear?
Does he have to give me a letter now saying it's free from any emcumbrances, and will these letters stand up in court if someone tries to repossess it?