All landlords should be aware of the Personal Property Securities Register.
Where a party (e.g. a tenant) is in possession of another party’s personal property, the PPSR can operate to deprive the real owner of their rights if the real ownership is not recorded on the PPSR.
Unless landlords register a security interest on the PPSR in relation to their personal property which is in the possession of a tenant, they may not be adequately protected against claims on the property by third parties including the tenant’s creditors, for example a bailiff, or the actions of the tenant in selling the items.
Only real estate is registered, with Landgate.
Such such PPSR clauses must:
- contain reasonable terms
- restrict the landlord to making a registration on the PPSR which is confined only to the relevant personal property and does not cause inconvenience to the tenant by being overly broad
- will not affect the tenant’s ability to obtain finance and provide security to their creditors/lenders.
Landlords should get legal advice.