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Why is using the PPSR important?
Conducting a search on the PPSR is good practice when you are purchasing expensive or valuable second hand goods. A check when buying items such as a car, boat or machinery you can find out whether there is any finance owing. This way you can help protect yourself from having the item repossessed by a finance company, should the previous owner have had a debt on it which they have failed to pay.
PPSR.com.au provides you with access to the Personal Property Security Register with a PPSR report from just $28.95
If you don’t register security interests on the PPSR you may not be protected in the event of insolvency. Ownership of goods is irrelevant. If you do not register security interests you will be an unsecured creditor.
The Register is also used to determine priority for secured creditors in the case of debtor default or liquidation. If you are not a secured creditor you will not achieve priority.
If you are a secured party (or potentially a secured party) you will be able to use the PPSR to search for and register security interests in personal property.
While registering security interest is not mandatory under the Personal Property Securities Act 2009, doing so offers both security and priority.