Thursday 6 June 2013

Secured Loans and Personal Property Security Register

People borrow and lend money for all sorts of reasons. It may be a close friend short of cash or Uncle Tommy needs money to renovate his house?  Apart from the issues of what happens if the borrower fails to repay the loan, what happens if someone dies and there is no paper trail to say what was agreed to if anything?

If you are lending money to another party with an item of property offered as security then you must under the new PPSA (Personal Property Securities Act 2009) clearly document that property.

It doesn’t matter whether the property is tangible (eg, car, boat, plane) or intangible (eg, shares, patents), it must be registered.

We have revised our Secured Loan Agreement so that it contains all the provisions required to document a loan arrangement, including those required by the PPSA. This means that the lender can register their interest on the Personal Property Security Register (PPSR) so they have the rights to that property as security in the event that the loan is not honoured.

For more information go to “What do I need to know about the Personal Property Securities Act?”  at http://www.rpemery.com.au/articles/about-ppsa-loans.html

Or view our Revised Secured Loan Agreement at http://www.rpemery.com.au/online/loan-agreements.html

Tuesday 4 June 2013

Difference between assigning a lease and subletting

“Assigning” and “subletting” may sound like interchangeable terms but are vastly different.

If you have space in your leased premises that you are thinking of assigning or subletting to another, you should make yourself familiar with the legal effects, the pros and the cons of both assigning and subletting.

What is an assignment of lease?

Where a tenant decides they no longer wish to be bound by a lease, they can transfer all of their rights and obligations under the Lease to another (with the landlords consent), who then assumes the position of tenant.


What is a sublease?

A Sublease enables a tenant who has spare space  that is not being utilised to sublet that space to another.

The Sublease is essentially an Agreement between the sub-lessee and the existing tenant.  The existing tenant will still ultimately be responsible to the landlord, even for defaults of the sub lessee, for example, non-payment of rent or damage to the premises. 

For more information click here