Introduction
As a business owner and a real estate investor, you’re likely aware of the importance of having a comprehensive understanding of all relevant legislation. While most people think about registering their security interests with the Personal Property Securities Register (PPSR registration) when they first acquire them, few realize the importance of keeping them up-to-date as they change.
What is the PPSR
The PPSR is a register of security interests. That means it’s where you can find out who has a legal interest in any personal property or chattel that is registered on the PPSR. Personal property includes things like cars, boats, and farm machinery to name but a few. Chattels are movable items with an economic value, such as tools and laptops.
The registration process only applies to personal property and chattels worth more than $5,000 (excluding GST). If your item does not meet this threshold then you needn’t register it on the PPSR before selling it; however, if you do have an item worth less than $5k then we recommend getting professional advice before selling it off!
How does the PPSR work
The PPSR is a central database of security interests in personal property. It is managed by ASIC and contains information about:
- the registration status of a mortgage (whether it has been registered or not)
- who the registered owner of your property is (if you have a mortgage), and
- whether any other person has any registered interest in your property.
What can be registered on the PPSR
The PPSR is a register of security interests (purchasers’ rights) over personal property, which includes land and chattels. These are called ‘securities’ or ‘purchasers’ interests’.
The PPSR was created to:
- help businesses avoid problems that could arise from multiple interests in property held by different people; and
- reduce the amount of money spent on searching for lost assets.
How to register your security interest
To register your security interest on the PPSR, you’ll need to complete a form called an “application for registration”. The application must include:
- The name and address of the secured party (the person who has given the security)
- The name and address of the debtor (the person who owes money under the security)
- A description of all collateral (property) covered by the security agreement. This includes any other documents relating to this particular agreement.
Security interests must be registered to provide effective notice and enforceability.
Security interests must be registered to provide effective notice and enforceability. The PPSR is a register of security interests that have been established under the Personal Property Securities Act 2009 (PPSA).
The PPSR is a public register, meaning that its contents are accessible to the public. The information in the PPSR can be accessed by searching through it on the ASIC website or by contacting us directly for more personalized assistance.
The information that appears on your credit report may affect your ability to access credit, get a job or even rent an apartment or house – but only if someone checks your report! Anyone can request a copy of their credit report once per year from Veda Advantage or another provider; however, you should also remember that you do not have access unless someone asks for it specifically because they want something specific from it like renting an apartment etcetera…
Conclusion
The PPSR is the best way to protect your security interest and ensure that it is enforceable.
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