Personal Properties Securities Act: Importance of Registration.
As part of our ongoing commitment to our subscribers to update them as to new developments in the law, you might be interested in a recent decision from New South Wales.
As you may be aware, the Personal Properties Securities Act 2009 replaces the various security registers in the States with one Register at a Federal level.
Under that Act, unless a “personal property security agreement” is registered, you will not be able to assert your right to property against those who are registered.
In a recent New South Wales decision, the Court has upheld the operation of the Act and concluded that notwithstanding possession of the property, the Defendants could not maintain their claim to the property as against the Plaintiff as they had not registered their interest as against the Plaintiff.
Notwithstanding the differing circumstances, this case reinforces the importance of ensuring that any agreement dealing with property (particularly Commercial Leases which include Lessor’s plant and equipment) must be registered on the Personal Property Securities Register. If you are unsure whether your agreement needs to be registered, you should contact our office to discuss the matter with one of our Commercial Solicitors.