As a Commercial Landlord, How does the Personal Property Securities Act Affect You?

You can now protect your Personaal Property

TO BE HONEST, most investors have little or no idea of the added protection for Landlords, with respect to any personal property you make available to tenants — such as office furniture, or any other equipment.

Many of you would be aware that real property has historically been registered by the land title (or in some states, the registration of the lease). Whereas, personal property has not been registrable.

However with the creation of the Personal Property Securities Register, personal property can now be registered — and therefore, your rights fully protected.

If you lease a Commercial property to a tenant, and it also includes personal property such as furniture, machinery, equipment, fittings or furniture … then, this personal property can now be registered.

What it means …

By doing that, any personal property owned by you (as the landlord) cannot be lost to higher registered claims from an entity or person in possession (ie: your tenant); nor to an unrelated 3rd party like a receiver, administrator or finance company.

In other words, if you fail to register your interest in on-site plant and equipment, then those rights to ownership may be lost if a financier were to register an interest over the tenant’s assets, and the tenant goes into administration.

Alternatively, if your tenant abandons the lease or needs to be locked out due to a default … you may also not be eligible to take ownership of the personal property ? if that personal property has been registered by a third party on the Personal Property Securities Register.

Bottom Line: This new personal Property Securities Act (2009) came into effect on 30 January 2012. And if you do own Commercial property, it is now time to get your house in order — and fully protect your investment.

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