A repairer’s lien is a legal right for repairers to hold goods (such as motor vehicles) until they have been paid for work they have done on them. The right is “possessory”. That is, it is a right of the repairer to retain possession of the goods until paid. Does the Personal Property Securities Act change that? No, subject to conditions.

Section 8(1)(c) of the PPSA provides that the Act does not apply to a lien, charge or other interest in personal property that is created, arises or is provided for by operation of the general law. Accordingly, repairers’ liens are not registrable security interests under the PPSA. Priorities between a repairer’s lien and a holder of a registered security interest (such as a financier) will be determined by section 73(1) of the PPSA.

Section 73 (1) of the PPSA provides that a lien created by operation of general law or under statute arising out of providing goods or services in the ordinary course of business has priority over a security interest registered under the Act if the person who provided the goods or services did not know that the agreement that created the security interest prohibited the establishment of a lien by the debtor.

For example, a car repairer who carries out repairs to a car in the ordinary course of business might be aware that the car has a registered security interest to a financier but is not aware of the terms of the security agreement which might prevent the car owner from creating other interests in the car. As a result of s 73(1) of the PPSA, the car repairer’s lien over the car will have priority over the financier’s interest in the car.

State legislation regarding repairers’ liens may also be relevant.