If you are looking to purchase an equipment from a private vendor, there are certain checks that should be completed to ensure you gain clear title to the asset; a PPSR is one of them.
As your trusted Finance Broker, we complete several checks to ensure that the equipment you are purchasing, is from a legitimate and reliable source. We also ensure that the vendor has the legal right to sell the equipment, by requesting proof of ownership from them.
To ensure you receive clear title, we also carry out a Personal Property Securities Register (PPSR) search. This search allows us to see if the equipment is currently encumbered (e.g. by a lender) or on hire from a third party. It also allows us to see the equipment history on the National Exchange of Vehicle and Driver Information System (NEVDIS). NEVDIS is a register for information recorded against specific identifying numbers, e.g. we can see if the equipment was ever recorded as written off or insurance damaged. We will work to request the removal of any encumbrances or on hire interest noted on the asset on your behalf.
These checks are essential to ensure you obtain clear title to the equipment being purchased. We will also complete a PPSR search on the vendor to verify that there are no companies holding security over the vendor themselves or their company/property. We look to see if the vendor has an All Present and After-Acquired Property Charge (AllPAAP), sometimes referred to as a floating charge, listed against them. If they do, we work to remove the asset you are purchasing from this blanket security. This way your asset is unencumbered at the time of settlement and ensures your lender gains first priority to their loan security. It safeguards your assets, e.g. from the potential to be caught up in repossession if the original owner was to be put into liquidation or bankruptcy.
If you are paying cash for equipment from a private seller, it is always important to consider and obtain the relevant checks.
For more information, please feel free to reach out to one of our Finance Brokers on 07 4639 1011 or submit an enquiry.
DISCLAIMER: The above content is to provide general information and does not constitute financial, legal or other advice. This means that duties and requirements imposed on people who give financial advice do not apply to this content. For advice contact your accountant or legal advisor.