What is the PPSA?
The Personal Property Security Act (PPSA) came into effect on 30 January 2012, aiming to regulate interests in ‘personal property’. That is, property other than real estate.
Who does the PPSA Apply to?
Essentially, the PPSA may apply to any of the following parties:-
- sellers or buyers of personal property;
- lessors or lessees of personal property;
- persons supplying goods on retention of title terms (e.g. hire arrangements); or
- financiers taking security over personal property.
What is the PPSA Transitional Period?
When the PPSA came into effect, any person with an existing security interest in personal property was granted a two year transitional period in which to register his or her interest on the newly established Personal Property Security Register (PPSR).
During the two year transitional period, the interests of secured parties were deemed to be “temporarily perfected”. Essentially, this meant that their interest took priority over competing interests in the same property.
What do I need to do?
From 31 January 2014 onwards, any unregistered security interest will loose its status as “perfected” and secured parties will be at risk of loosing their priority and ultimately, the title to their property.
Now is the time to perfect your security interest and protect your personal property. Depending on the nature of your property, perfection can be achieved by either registration, possession, or (when applicable), control.
For advice on how to perfect your security interest and for assistance in registering on the PPSR, please contact the experienced team at Everingham Solomons, because Helping You is Our Business.
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