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Understanding the Personal Property Securities Register (PPSR)
We are constantly amazed that most small businesses have little knowledge of the Personal Property Securities Register (also known as PPSR). Particularly if you:
- Sell goods on retention of title terms
- Hire, rent or lease out goods
- Buy or sell valuable second-hand goods or assets
What is the PPSR?
The Personal Property Securities Register (PPSR) is an online register managed by the Australian Government that records security interests in personal property. This allows individuals and businesses to verify whether assets, such as cars, boats, or equipment, have debts secured against them.
It is not an ownership register.
Why Check the PPSR?
If you're considering purchasing second-hand property, whether a car, boat, trailer, or other goods, checking the PPSR is a crucial step. It allows you to:
- Confirm there are no outstanding debts tied to the item.
- Ensure the item has not been reported as stolen or written off in an insurance claim.
For a small fee of just $2, this simple check provides significant peace of mind, especially when buying through private sales or online marketplaces.
Why Register Property on the PPSR?
If you have a security interest in property, registering it on the PPSR helps protect your rights. This is particularly important if the borrower or business holding your property becomes insolvent.
Common Examples of Security Interests:
- Secured car loans: Loans where the car is collateral.
- Hire-purchase agreements: When goods are financed through instalments.
- Fixed or floating charges: General security agreements over company assets.
- Retention of title agreements: Where goods are supplied on credit and ownership is retained until payment.
- Leases and service contracts: Secured by a property interest.
What is Personal Property?
Personal property is not just for an individual it also the property for a business and includes almost everything that isn’t land, buildings or fixtures. Things you can register security interests over include:
- vehicles, boats and aircraft
- crops and livestock
- stock in trade
Applied Education recommends that all business owners visit and download the following guide (which is well written) https://www.ppsr.gov.au/ppsr-business-guide-0
Enjoy this topic? You can study Property Law or Small Business Operations and Finance with Applied Education.
If you're not unsure which course best suits you, get in touch with one of our consultants today and we will endeavour to help you.
