By checking the PPSR before going for a deal, you avoid the dangers of security interest. According to the source posted above, a security interest is a type of contract signed between the parties to assure some sort of obligation or performance of an obligation.
What is PPSR?
The Personal Property Securities Register (PPSR in short) is a national online register whose sole purpose is to provide valuable information to consumers if they decide to buy personal property like boats, cars or works of art. Land and buildings are not included.
This confers the beneficiary a high degree of power and a set of preferential rights that can allow him to repossess the property. So, for example, if the car that you buy comes with a security interest attached to it and you fall behind on a payment, the beneficiary can regain its rights on the property.
Below, you will find more information about the Personal Property Securities Register and how it will help you. Read the following entries to protect yourself from bad purchases.
Purchasing cars, trailers, caravans and other vehicles
If you decide to buy any type of motor vehicle that is able to travel at a speed higher than 10km/h and has a motor power of more than 200 W, you should consult with PPSR. You must make sure that no money is owed on the particular vehicle.
If you search for the vehicle on the PPSR database and you find out that there is debt attached to the vehicle that you are attempting to buy or lease, steer clear of it. In case the seller backs out of payments, the finance company registered in the PPSR database can take possession of your vehicle.
Registration of the motor vehicle
To see if the car is road registered, you can either check the registry or ask the owner of the car himself if he has all the necessary documentation to prove the purchase. Look for the plate number, Chassis number, and engine to verify if the details on the document match the car.
Another thing you could do is ask a professional to inspect the vehicle. For that, contact the state road assistance association or motor traders association for a proper investigation.
When it comes to boats, most of the same pieces of advice written above apply, except for a few things.
Before buying the boat, look for any requirement to register the boat with the respective maritime authority in the state that you currently live. Then, ask the owner of the boat if you can see all the necessary documentation to verify the official number or the hull identification number (HIN).
Once you get your hands on the paperwork, make sure that the serial number that you have entered on the PPSR database is the same as the serial number written on the registration papers from the owner. This way, you can avoid getting yourself in a fraudulent scheme and all the legal hassle attached to it.
So, what do you think about PPSR? Do you see it as an advantage for buyers or not?