The New Personal Property Securities Register

The Australian Government has been planning for some time now to commence personal property securities reform and has begun part one of that process by introducing the Personal Property Securities Act 2009 (Cth).

Part two involves the implementation of a national Personal Property Security Register, and this is due to commence in October 2011.

Personal property is any property other than land, buildings, or fixtures, that form part of that land. Personal property can be items such as cars, machinery, crops, or stock – it can also include intellectual property, invoices that have yet to be paid, or rights under a contract.

Personal Property Security is where a party secures an interest in personal property as a security in matters such as the provision of finance or the provision of credit.

Every Australian State currently has a number of registers dealing with personal property securities. For example, New South Wales has the following registers:

  • Register of Encumbered Vehicles (REVS NSW)
  • Security Interest of Goods Register
  • Register of Co-operative Charges

The numerous amounts of registers currently operating throughout the country is why the Australian Government has reformed the system to steamline how Personal Property Securities are registered. The National Personal Property Security Register will also be on-line and will comprise of the combination of existing registers throughout the country. As expected, this is a massive effort.

More details about the new Personal Property Security Register may be found at http://www.ppsr.gov.au/www/ppsr/ppsr.nsf/Page/About_PPS.

What this will mean is that it will protentially be much easier for you to record an interest in personal property that your client has offered up to you as security in exchange for your services.

More updates to follow once the register has been implemented.

Small Business Tips – Leases

If you’re starting out your own business or you work from home, one of the things you may consider at some point in time is to establish a commercial presence by leasing out an office or a retail shop.

A commercial lease is different to a residential lease, so don’t assume that you can deal with it on your own! To do so would be a grave mistake. If you are in any doubt at all you should seek legal advice regarding your lease.

Retail Leases Act

The Retail Leases Act 1994 (NSW) applies to leases which are considered to be “retail shop leases”. A retail shop is defined in the act to cover any shop which is in a shopping centre or any shop which is to be used for retail purposes. There are exceptions, for example, shops which are in excess of 1,000 square metres, leases in excess of 25 years, or offices which are not in a shopping centre.

The Act also requires that all security bonds need to be deposited with the Director-General – however this does not apply to bank guarantees.

Registration

If the term of the lease, including options, exceeds three years, then it should be registered with the Department of Lands. However a lease can still be registered with the Department of Lands if its term is less than three years. Registration reinforces the tenant’s interest in the property and can avoid any conflict with other interested parties.

Common lease terms

While the Law Society has a standard lease document, its use is not mandatory. However, most leases will contain a number of terms that are common between leases. These include:

  • Duration of Lease
  • Options to Renew
  • Permitted Use
  • Rent and Rent Frequency
  • Outgoings
  • Rent Review
  • Security Deposit or Bank Guarantee
  • Insurance

Other Links

The NSW Retail Tenancy Unit may be found at:  www.retailtenancy.nsw.gov.au.