The Personal Property Securities Register is effectively a national online ‘noticeboard’ that allows you to see registered security interests over personal property, such as cars, boats, or artworks (but not including land or buildings). It can provide information to protect both consumers and businesses.
The PPSR can protect your business in three ways:
1. When buying goods, you can search the PPSR to find out whether the goods are being used as security for a debt. If someone has registered a security over the goods, they can claim them even after you take possession, without compensation.
2. If your business leases goods for longer than a year, the PPSR will protect your interest in those goods. If a customer becomes bankrupt while in possession of your goods, then they may be sold to pay creditors if you have not registered a PPSR interest.
3. The PPSR will protect your retention of title arrangement. A retention of title clause in your contract is not necessarily sufficient protection on its own. Registration gives you first priority to the goods if you do not receive payment, or to the proceeds of sale if the goods have been used and on-sold.
If you need any further information on the PPSR or on any other aspect of business or consumer protection law, contact Shavin of our office via email or call him on 08 8410 9294.
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