Since 2009 a new regime has been implemented creating a new one stop register for all securities on assets that are not land or fixtures of the land. The impact on owners of livestock agisted on another person’s land is significant. A hand shake deal will not assist you if the bank takes control of the land.
If the landowner fails to meet its mortgage terms and its bank is entitled to possession of the land then your livestock on that land can be taken by the bank in satisfaction of the debt owed to it by the landowner IF you do not have your title to the livestock secured by registration on the PPSR (Personal Property Security Register).
Even when you are in a family arrangement or you have different family members or structures owning the land to the members who own the livestock this documentation is vital to protect the ownership of your livestock.
This registration is a complex procedure and must be supported by correctly prepared documentation evidencing the agistment (or similar arrangement ie backgrounding schemes) terms and particularly noting the way that this transaction is able to be protected under the PPSR scheme.
At Wright Clarke we can offer a range of services tailored to your needs and budget from a thorough review of all transactions and complete advice on the best way to structure these arrangements to a simple agistment agreement covering the very basic terms and covering the PPSR issues but leaving many of the small details to you and the landowner to negotiate from time to time.
Talk to us today to ensure your business is protected.