FAQ: What are the benefits of the PPSR for businesses and individuals?
What are the benefits of the PPSR for businesses and individuals?
The Personal Property Securities Register allows businesses to register their security interests over personal property, giving them rights over the personal property in the event that another party does not fulfil certain obligations (such as repaying a loan advanced to purpose the personal property). This helps to protect suppliers and finance companies from incurring losses when a customer defaults on a loan or does not fulfil some other obligation.
On the flipside, the PPSR also allows businesses and individuals to check whether the personal property they are buying - such as boats, cars or machinery - have a security interest over them before the purchase is made. This provides buyers with peace of mind as they can ensure they will receive "clear title" (full rights to own) the personal property.
If you have purchased or are looking to purchase or invest in some form of personal property (except real estate), you can use the PPSR to make sure that the personal property does not have a security interest over it. This is important, as, for example, if you buy a car that still has money owing on it (and the lender still has a security interest registered with PPSR) the car could be repossessed if the original owner (the person or business you purchase it from) default on a loan or similar.
In the specific case of car finance, the PPSR is of particular benefit to people considering purchasing a car privately as it allows the purchaser to check that they will receive clear title over the vehicle and also verify some other particulars of the vehicle. The benefit is particular to car loans for private sales as dealerships are required by law to only sell vehicles with clear title.
The PPSR can be searched for a fee via http://www.ppsr.gov.au - you can either create an account or search as a casual user. A casual user registers in a pay-as-you-go capacity. You can search the register using different search criteria, like grantor (the person supplying the security) details or the serial number (e.g. registration number for a car) of the property.