Thats correct... if the car is dodgy it can be repossessed off you, even though you paid good money for it, and you wont get a cent back.
When you do a REVS check, if it comes up clear, you can buy insurance through REVS to guard against it... but obviously you cant in this situation as it has shown some problems.
Just cross check the VIN against the registration details (build year, model, colour etc). If it all checks out it should be ok, but I would definately double check with this AUVIS mob. Search for it in google.