Personal Properties Securities

The Personal Property Securities Act 2009 (Cwlth) (PPS Act) commenced on 30 January 2012. Since then LPLC has received claims every year for mistakes by practitioners in dealing with PPS Act issues.

This bulletin contains background information about the PPS Act and key concepts.

Practitioners for both vendors and purchasers need to understand that the Personal Property Securities Act 2009 (Cth) (PPS Act) may apply to a contract of sale of land because:

• Sometimes a vendor selling land, also sells goods to the purchaser.
• Sometimes a vendor selling land also transfers a licence to the purchaser.
• The sale of land may be subject to a lease where the vendor may have received a cash security deposit from the tenant.
• The sale of land may be subject to a lease where the vendor may have also leased goods to the tenant.

The LPLC recommends that practitioners consider the matters in this Alert when acting in relation to the sale of land.

The sale of a business often includes the sale of personal property such as equipment, stock in trade and motor vehicles. Practitioners for both vendors and purchasers need to understand what personal property is included in the sale and how the Personal Property Securities Act 2009 (Cth) (PPS Act) may impact on that sale. This Alert is not intended to be a comprehensive list of what to do in a sale of business, but to highlight issues in relation to the PPS Act.