An Introduction to the PPSR
Is your business using the Personal Property and Security Register ("PPSR") to its full advantage?
The Register, which commenced on 30 January 2012, introduced a national regime which replaced many existing schemes that dealt with the registration of security interests over personal property in Australia.
If you haven't taken the time to find out its affects on you, tune in below find out how to use the PPSR to better manage the financing arrangements in your business.
See below for the complete transcript of this episode -
Many of you have probably come across references to the PPSR in your recent business dealings, and today, we're going to have a look at what the PPSR is and what it means for your business.
The PPSR is the personal property and security register. It is Australia's first national record of all security interests held over personal property and replaces more than 30 separate property registers.
PPSR applies only to personal property, not real property. Personal property is any tangible property with value other than land. Examples include motor vehicles, household goods, jewelry, farming equipment, and art.
Interestingly, the register also includes nontangible property such as investment interests and intellectual property.
So, what is a registrable security interest? A security interest is an interest in property granted by a transaction that secures payment or performance of an obligation.
For example, a loan granted to purchase a new tractor creates a registrable security interest in the tractor. However, the PPSR can be used to record a wide range of security interests.
Property put up as collateral to secure a payment or obligation can also be registered against the PPSR. This applies to leased goods secured to pay rent.
If businesses sell goods on consignment or retain title arrangements now, they can also arrange for those interests to be registered to secure their interests and rights.
PPSR also has significant benefits for people intending to purchase valuable properties secondhand, but buyers still need to exercise caution. The PPSR regime is entirely voluntary and does not guarantee a clear title.
If your business provides finance arrangements, leases property, deals with consignments or retention of title, or you're otherwise unsure of your legal rights regarding personal property, contact the team at You Legal. Our team of experts is always on hand to answer your questions.
What Should I Do Next?
Contact us if you would like further legal advice on PPSR. Our lawyers at You Legal will be happy to assist you in whatever way we can.
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* This blog is for general guidance only. Legal advice should be sought before taking action in relation to any specific issues.