Encyclopedia
Personal Property Registry (PPR)
BC's registry for security interests in personal property.
For example: A buyer of a business searches the registry for liens on the equipment. (Illustration only, not a real deal.)
Official source: Personal Property Security Act (BC Laws)
Example only, not a real client. Say you are buying a business with equipment. A search of the Personal Property Registry shows a lender has a security interest in the equipment. You make sure it is cleared at closing.
What I’d tell a friend
Search the Personal Property Registry when buying equipment or a business.
Why it matters to you
Equipment and inventory can be financed or pledged to a lender. If you buy a business without searching, you can end up with assets someone else has a claim on, so search before you pay.
How to use it in your deal
Buyers of a business, or of a building that comes with equipment, should have your lawyer search the PPR against the seller's exact legal name, and make discharge of any registrations a closing condition. Assets sold free of claims protect you from a lender showing up later.
Landlords should know that a tenant's lender may have registered against equipment in the premises, which can affect the landlord's ability to seize goods for unpaid rent; some lenders ask landlords to sign waivers. Read those carefully. Sellers should arrange payouts and discharges in advance. Lenders register their interests promptly to protect priority. Tenants financing equipment should tell the landlord if the lease requires it.
Mistakes I see
Searching the wrong name. Skipping the search. Not requiring discharges. Landlords signing broad lender waivers without reading.
In BC and Vancouver
The Personal Property Security Act governs security interests in BC. The registry is run through BC Registries and Online Services.
Official sources: Personal Property Security Act (BC Laws) · CanLII (court decisions)
What it is
BC’s Personal Property Registry records security interests in personal property, such as equipment, vehicles and inventory.
It helps buyers and lenders see whether items are pledged as security.
What to check
Search before closing and make clearing liens a condition.
Ask your lawyer to handle searches and releases, and check equipment leases too.
Questions to ask before you sign
- Have we searched the exact legal name?
- What's registered?
- Will it be discharged at closing?
- Does a landlord waiver exist?
- What equipment is included in the price?
Keep reading
Related terms: Asset sale, Due diligence
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General information for British Columbia only. It isn’t legal, tax, accounting or financial advice, laws and rates change, and reading it doesn’t make you my client. Any numbers or scenarios are hypothetical. Check the linked official source and talk to a lawyer, accountant or other qualified professional before you act or sign anything. See the terms and disclaimer.