The Personal Property and Securities Register
If you have recently taken out a loan for personal property, such as a new car or boat, you have probably come across the PPSR.
The PPSR is the Personal Property and Securities Register. It is Australia’s first national record of all security interests held over personal property and replaces more than 30 separate property registers.
The PPSR applies only to Personal Property. That is, any property other than land. It is any tangible property with value. Examples include motor vehicles, household goods and jewellery, farming equipment and art.
Interestingly, the register also includes non tangible property, such as investment interests and intellectual property.
So what is a registrable security interest?
A security interest is an interest in property granted by a transaction that secures payment or the performance of an obligation. For example, a loan granted for the purchase of new a tractor creates a registrable security interest in the tractor.
But the the PPSR can be used to record a whole range of security interests. Property put up as collateral to secure a payment or obligation can also be registered against the PPSR. If you offer up your jewellery to secure a new personal loan, a security will be registered against that jewellery. The PPRS also applies to leased goods to secure the payment of rent.
The PPSR also has significant benefits to people who are intending to purchase valuable property second hand, as there is now a single register to search all property. However, buyers still need to exercise caution: the PPSR regime is entirely voluntary and does not guarantee clear title.