what i payed for the car is not relevant. what i asked to be fixed from the buyer before i brought the car is.
put yourself in my shoes, a car thats leaking a decent amount of oil while stationary, would you want it to be fixed especially after you specifically asked for it to be? or just kick yourself in the ass and "let it be".
The power unit, clutch system, transmission system, differentials, axle housings and all associated pipelines must be properly sealed and free of dripping or flowing oil leaks onto the roadway, exhaust system or brake friction surfaces.
Dampness, weeping or staining are acceptable but oil leaking from the underside of the vehicle to such an extent that it is likely to drop oil on the road surface (if the vehicle is parked or idling stationary for any length of time) is unacceptable.
http://www.vicroads.vic.gov.au/NR/rdonlyres/7A14DDDC-3DF3-4ADD-9821-B8C7816777A3/0/VSI26web.pdf
i found out from vicroads that basically i have to try and negotiate with him.
if he declines, i have to go to another workshop and get a roadworthy test done, then send the indicating problems to the mechanic.
if he declines again, i have to send the 2 rwc + a letter of complaint to vicroads.
thanks to those with the helpful replies