5 FAQs Answered About the Personal Property Securities Register

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Table of Contents

• 1. What is the Personal Property Securities Register?
• 2. Where Can I Find the Personal Property Securities Register?
• 3. What Can I Register or Search For on the PPSR?
• 4. Do I Need an Account to Search or Register Interests on the Register?
• 5. What is a “Secured Party Group” and Do I Need One?
• Key Takeaways
• Frequently Asked Questions

The Personal Property Securities Act 2009 (Cth) (PPSA) introduced a national system to deal with security interests given to businesses and individuals over personal property. The PPSA created the Personal Property Securities Register (PPSR). Individuals and businesses can use the PPSR to register their security interests in personal property or search for what security interests have been granted to others. This article will look at the PPSR, where you can find it, and how you can use it.

1. What is the Personal Property Securities Register?

The PPSR acts as a public notice board of registered security interests over personal property in Australia. In many respects, it is similar to each State and Territory’s respective Land Titles Register, which is a public notice board in relation to interests in real property (land). 

You can use the PPSR to:

• register your interests or rights over a person or entity’s personal property to secure a debt or other obligation that they owe to you; and
• search to see whether someone has already registered an interest over a person or entity’s personal property.

2. Where Can I Find the Personal Property Securities Register?

The PPSR is online, meaning you can access it 24 hours a day, seven days a week.

3. What Can I Register or Search For on the PPSR?

You can register rights or security interests in personal property. Personal property includes all property (whether tangible or intangible) other than land and includes (but is not limited to):

• cars;
• plants;
• aircraft;
• intellectual property;
• book debts; and
• paintings.

When you take a security interest over personal property, you must ‘perfect’ that interest to receive the highest amount of protection. One of the ways to perfect a security interest (and by far the easiest way) is by registering it on the PPSR. Doing so will let the world know at large that you have taken that security interest. It will generally give you priority over any other people or entities who have taken registered or unregistered security over that same piece of property after you. 

It also will generally ensure that, if the relevant person who has granted you the security interest (known as the grantor) goes into liquidation or bankruptcy, your interest in the property will be protected. Otherwise, the property would vest in that person (i.e the relevant liquidator or trustee in bankruptcy).

You can search the PPSR for a specific piece of personal property. For example, a particular:

• motor vehicle; 
• watercraft; or 
• serial numbered good – usually, this is because you want to buy that item or take a specific security interest over it. Likewise, you want to ensure that the property has no other security interests over it. 

Conducting Searches

You can also conduct a search on the PPSR over an individual, company or other entity (like a partnership) to see what security interests have been registered against that person and its assets. If, for example, you were about to buy a business (and all its assets) from a company, you would do a search on the PPSR against the seller to check whether any of the assets are encumbered. The aim is to ensure that when you complete the sale, you are getting clean title to the business assets.  

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Searches on the PPSR need to be for bona fide purposes. It is an offence to search the PPSR without having a real interest. It is also an offence to register a security interest on the PPSR without believing on reasonable grounds that you are actually a secured party in relation to the collateral (property).

4. Do I Need an Account to Search or Register Interests on the Register?

To register a security interest on the PPSR, you will need to have an account. The costs of making or managing your registration are nominal. You do not need an account to search the register and can do so as a casual user.

5. What is a “Secured Party Group” and Do I Need One?

A Secured Party Group (SPG) is a system developed under the PPSR to assist secured parties in managing their registrations. A secured party is an individual or business that has a security interest in personal property. To create an SPG, you must have a security interest and a user account. Once you have established an SPG, you cannot change the parties within that group.

Key Takeaways

Registering your particular security interest on the PPSR will generally ensure you have priority over the relevant personal property in the event there are competing interests. It will also ensure that you have the least chance of losing your interest in the property if the grantor goes insolvent or bankrupt. If you are buying property or looking to secure obligations (like a loan) over property, then doing searches over the specific property or the grantor is key to ensuring that you receive that property without any existing encumbrances. 

For more information, our experienced business lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 1300 544 755 or visit our membership page. 

Frequently Asked Questions