Unfortunately, simple and innocent mistakes during the registration process are far too common – and usually made unknowingly.
Based on our PPSR audits of hundreds of businesses over the years, we’ve found that more than 80 per cent had serious errors in their PPS registrations, which limited or invalidated the company’s security interests.
For example, businesses have had their claims invalidated because an 8 instead of a B was entered as the VIN, or because they didn’t tick the PMSI box when registering on the PPSR.
And the sting? In many cases, companies only realise their mistake when they try to recover their property from an insolvent customer – only to be told their claim is worthless, due to an incorrect and invalid registration.
We’ve been helping businesses, big and small, with the PPSA and PPSR since day dot, when the legislation was first introduced.
We know what to look out for, and how to ensure your property is registered correctly. And on time. Every time.
Because, given the complexity of the PPSR, many businesses have found out the hard way that it’s all too easy to make mistakes that can invalidate their security interests.
Here are 5 of the most common mistakes to avoid when registering your property on the PPSR:
1. Grantor Identification
The most common errors when it comes to identifying a grantor are:
- Identifying a company by ABN rather than ACN
- Identifying a sole trader by ABN rather than name
- Identifying a trust by name or trustee – when it has ABN allocated
- Identifying a trust by ACN of corporate trustee
- Wrongly identifying other organisations such as clubs or charities.
2. Collateral Class
- Selection of incorrect collateral class.
3. Serial Numbered Goods (Motor vehicles, aircraft, watercraft)
- Consumer goods should be registered by serial number only.
- Error in the serial number will render the registration invalid.
4. Claiming a security interest is transitional when it is not.
5. Failing to claim a PMSI when the security interest is a PMSI.
If in doubt, always seek expert advice.