Just ask for the rego papers and their license, its how i check them.
The real owner should have no problem providing proof of ownership, the last car i bought a few weeks ago i made the owner go to vicroads and get proof of ownership as he lost his rego papers and his license had expired.
For proof of who he was he produced his passport.
Also pay by bank cheque, transfer the ownership straight away before the cheque can clear in case you need to cancel it.
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