Why Use the PPSR?
The Personal Property Securities Register (PPSR) allows businesses, both small and large, to register their security rights over their personal possession. This process gives businesses rights over their personal property in situations where another party might fail to fulfil obligations such as repayment of loans advanced to finance the personal property. Furthermore, it protects financial companies and suppliers from suffering losses in cases where a client fails to pay their loan or any other obligation. However, you should only place a security interest on a PPSR only in situations where you have evidence in the form of a written security agreement. You should also inform your grantor that you have registered a security interest on the personable valuable before issuing them with a copy of the verification statement.
PPS Act has well defined rules
The PPS Act and the PPS Regulations have clearly set rules, which state that the grantor identification information should be correctly filled out and the collateral that is involved should also be well described. If you happen to register using the wrong information, you risk the registration being invalid. When buying personal property, PPSR makes it possible for individuals and businesses to confirm whether the items have any security interests over them before they seal the deal. Consequently, buyers have peace of mind when making such purchases since they can ensure that they will get full ownership rights to the personal property.
Zero security interest
If you are planning on purchasing some personal property, apart from real estate, the PPSR comes in handy since it helps you in ascertaining that the property has no security interest over it. For instance, in case you buy a vehicle that still has a loan on it, i.e. the finance company still owns a security interest registered with PSSR, there’s a high possibility of the vehicle being repossessed. This happens in situations where the original owner fails to pay a loan or previous debt. In scenarios of car finance, people who intend to purchase a car privately can use PPSR to verify whether they will receive full ownership of the vehicle and also confirm other details about the vehicle. This helps them in making well-informed purchase decisions hence avoiding expensive legal cases that can drain your money. This benefit mainly applies to car loans for private sales, since most dealers are mandated by law that they should only sell vehicles that have clear titles.
What do I do now?
Contact us if you would like legal advice on the Personal Property Securities Register. Our lawyers at You Legal will be happy to assist you in whatever way we can.
* This blog is for general guidance only. Legal advice should be sought before taking action in relation to any specific issues.