The Personal Property Securities Act 2009 (Cth) and its impact on real property transactions
The focus of our previous publications has been the impact of the Personal Property Securities Act 2009 (Cth) (the Act) on banking and finance, insolvency and construction law where the impact will be more immediate. The focus of this note is on the impact of the Act on transactions involving real property.
While the Act does not apply to security taken over real property it will impact on transactions involving real property.
Property professionals will need an understanding of when the Act will apply and the risks involved.
Overview
The Act creates:
- new rules which treat many commercial transactions as a “security interest”;
- new rules on how to create a security interest in personal property;
- new rules on how to determine priority for competing security interests attached to the same personal property;
- new rules on how security interests in personal property are enforced; and
- a register and new rules on registering a security interest in personal property.
Personal property includes all forms of tangible property (eg goods) and intangible property (eg copyright and trade marks). Importantly, it excludes land, fixtures, leases of land and certain prescribed statutory rights and licences (eg water rights).
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