In both business and personal life, there may be times where we acquire secondhand goods, or advance funds to someone else.
In any private sale transaction, there is an element of risk involved for the buyer. Whether this be for a secondhand ute, equipment for your business, or a private purchase such as a boat, it can be prudent to do a search on the item to ensure that there are no claims already registered on it before you make the purchase.
The PPSR (Personal Property Security Register) is the government register of any security interests over personal property. Historically, these registers were kept on separate state registers (you may be familiar with the term “doing a REVS check”). Security interests held on assets are now listed on a national register called the PPSR. Security interests may be debts or other obligations, where the owner has used the item as security.
Anyone can search the register (a small fee applies) to ensure that the goods they are purchasing aren’t already security for another debt. This can be found at https://www.ppsr.gov.au/searching, then by choosing the desired type of search – vehicle, individual, IP, aircraft etc.
Equally, the PPSR can be used to ensure collateral promised on monies owed to you, is registered and listed on the public register. This can be via fixed or floating charges over property. This gives extra rights and can protect your interest. It can prioritise your ranking over other creditors if the other party has solvency problems.
Some of the common types of property that can have security interest registered over them are vehicles, crops, livestock, trading stock, equipment, commercial licenses, shares and cash assets. If you have loaned or advanced funds to someone else, taking a security interest may assist you.
Your C&N Advisor can talk through what might be best for you and put you in touch with a specialist in this area if needed.