We are all a bit tired of the red tape and ever presence of the Government and having to register everything from our cars to our births, deaths and marriages. While off the grid may be appealing for some, registering your personal property can save your ASSets.
Bob has a mate called Sally who owns a landscaping business. Sally needs to do some deep digging, so pulls a favour to get help from her buddy Bob, to borrow his excavator.
Bob, being the great mate that he is, drops off the machine to Sally’s yard. Now these two are mates, so there is no contract, no invoice terms and conditions and from Bob’s perspective, just helping a mate out.
Bob hears at the pub, that Sally has been doing lots of digging of a different type by digging a financial hole and avoiding paying her bills. Bob knew things were ‘tight’ for Sally, but he didn’t know how bad things were.
Bob swings by Sally’s yard to have lunch and a chat but finds the place locked up. Earlier that day, the liquidators had paid a visit and put Sally’s operation under a lockdown.
With no agreement in place, Bob’s excavator is now at risk of being listed as an asset of Sally in the liquidation process.
Taking action himself to take possession of his machine may be illegal and getting through the liquidation process may be costly and difficult, however, Bob was clever enough to listen to his advisors and register all of his property on the PPSR, including his machinery.
Personal Property Securities Register (PPSR)
The legislation covering the PPSR provides a legal framework for anyone with an interest in a personal asset to have legal grounds that protect or defend such an interest. The PPSR is the Australian national online database of security interests in personal property – this excludes real estate.
Listing your property on the PPSR is designed to protect you in situations where your property and assets may be used by others regularly but are still owned by you and ensures your rights are protected and defended.
Protect your ASSets
While most legislation, particularly around rights of owners, can be complicated and confusing, taking the time to understand and identify the risks of not registering your assets and how to mitigate those risks is vital to ensure the success of your business.
This can also protect you when you go to purchase an asset to ensure that no other securities are held over the asset, and that the person you are buying this from actually owns the asset.
In a nutshell…
Be like Bob, and be proactive to protect your ASSets. Don’t risk the property you have obtained through your hard work and register those ASSets.
For more information, or to check on a good find that you have seen on ebay, go to the PPSR website here