Mortgages, Securities and Caveats

Mortgages, Securities and Caveats

Loans to and from businesses as well as individuals frequently involved the borrower granting a security to the lender.  There are many different types of securities depending upon the particular transaction with some transactions requiring specific disclosure to the borrower.

Most types of securities are required to be registered either on the land titles register or on the PPSR in order to be fully effective.  There are specific requirements and procedures which have to be fulfilled before the grant of a security can be registered and therefore made fully effective.

This is a very complex area and should not be left to chance.  Failure to comply with the requirements may result in an un‑enforceable security or one which is deferred behind other creditors so the value of the security is lost. 

Sometimes securities can arise when you least expect it;  for example, from the terms and conditions of trade credit agreements which many people sign without really looking at them in depth.  If one of these exists, it may give the credit provider the ability to lodge a caveat against real property owned by the purchaser of products.

The rules and provides for enforcing securities differ depending upon the type of it and these have to be strictly complied with for the enforcement to be effective.

You should not take a risk in this area and should contact our finance law team for advice.

Personal Property Security

When dealing with security outside of land, the Personal Property Securities Act 2009 (“PPSA”) becomes relevant.  At Bennett & Philp, one of our key areas of expertise is the interpretation and application of the PPSA.  Our solicitors have provided seminars to clients and assisted in many transactions involving PPSA matters.  We also regularly update clients’ terms and conditions of trade to meet PPSA requirements and conduct training for clients on the making of registrations and other aspects of the PPSA.

For more information on personal property security, visit our Personal Property Securities page.

If you would like more detail about our services and capability in this area call us today.