22 September 2020
Hiring out? Register it! Or risk losing it!
If you are in the business of hiring, leasing or selling on consignment any personal property then you need to ensure that you are correctly registering on the national Personal Property Securities Register.
Personal property includes any property that is not land, buildings or fixtures. Some examples are motor vehicles, boats, crops, cattle, other livestock and plant and equipment.
If you are not fully informed and do not register your interests where required, you are at risk of losing your property in the event that the person or entity you have hired, leased or sold on consignment to goes broke. Strict laws say that trustees in bankruptcy and liquidators can seize assets in a bankrupts’ or liquidated company’s possession where the “true” owner has not registered.
Recent cases have also demonstrated that the Courts are harsh in making decisions where registrations are not completed correctly. The message is clear – if you do not register and do not do it properly, then you are at risk!
There are rules about how registration must occur and different rules about which registered party has priority depending on the circumstances. It is important that you know these rules if they affect you or your business.
In many cases, registration is simple and inexpensive and could save much money and stress down the track.
For assistance with this issue, please contact us.