Wimmera grain producers are preparing for harvest and might currently be considering entering into contracts with grain buyers to sell their soon-to-be harvested crops.

These sellers might be concerned about how to protect themselves from buyer default given recent grain-buyer insolvencies. The Personal Property Securities Register, or PPSR, can provide assistance in protecting grain sellers. 

The PPSR can also help people planning to purchase a used car. In this article, I will detail what the PPSR is and how it can best be used to assist with these two tasks. 

The PPSR is a government database, managed by the Insolvency and Trustee Service, designed to be used by consumers, lenders and business. It is a place that someone can register their interest in an item.

The PPSR covers personal property, which includes art, vehicles and machinery, crops and livestock, inventory, and shares. It can also include accounts, intellectual property, investment instruments of licences. Land and fixtures are not included as part of the register. The PPSR can be searched at www.ppsr.gov.au. 

Grain sellers

Businesses might use the PPSR to register ownership of items they have sold on credit or consignment. Grain sellers might use the PPSR to protect against buyer default. To do so they must have a security agreement with the grain buyer, this may be in the form of a retention of title clause within their grain sale contract.

A retention of title clause in the contract of sale can enable a purchaser to take possession of property without providing title to the grain until the full purchase price is paid. 

Usually, this clause will have to be negotiated with the grain buyer and for the clause to work, grain sellers need to register their security interest on the PPSR. This process is involved and time limits apply, so it is recommended that you engage a solicitor to ensure the registration is valid and effective if called on in the event of a dispute.

Purchasing a used car

For potential purchasers of a used car, the search can return information such as its stolen status, if it has been written off, or even if it is part of the Takata airbag recall and has not been repaired. 

It could also tell you if it has a security interest recorded against it. This is important, because if you have bought that car and there is money owing on it, it could be repossessed. 

The PPSR website allows you to search the register by VIN or chassis number; for other items, the serial number might be needed. The register is subject to some conditions of use and some small fees apply. At present, this fee is $2. You can visit website www.ppsr.gov.au for further guidance. 

 

RELATED: Farmers urged to take care selling grain

 

• Patrick Smith is the principal of O’Brien & Smith Lawyers. This article is intended to be used as a guide only. It is not, and is not intended to be, advice on any specific matter. Neither Patrick nor O’Brien & Smith Lawyers accept responsibility for any acts or omissions resulting from reliance upon the content of this article. Before acting on the basis of any material in this article, we recommend that you consult your lawyer.

The entire November 25, 2020 edition of The Weekly Advertiser is available online. READ IT HERE!

The entire November 25, 2020 edition of AgLife is available online. READ IT HERE!