If you are buying or leasing real estate or financing a purchase of real estate do you need to worry about PPS?

Yes. Although security interests in real estate or fixtures are not registrable under the Personal Property Securities Act, there may be personal property security interests which may affect the value or your enjoyment of the property you are buying, leasing or financing.

There may be registered security interests in the following on the property:

• machinery or equipment not fixtures
• removable fittings
• stock
• consignment items
• bailment items (eg construction equipment)

You should therefore consider including a PPSR search in your procedures against the name of the counterparties or in respect of any serial numbered goods included in your real estate purchase.

Once the PPS Register goes live, an ASIC company search will no longer include details of charges against the company’s assets (other than historical).

In addition, if your contracts give you rights in respect of rent, insurance proceeds or a security deposit then these will not be enforceable in the event of insolvency if your security interest has not been registered.