THE PERSONAL PROPERTY SECURITY REGISTRATION SYSTEM

Why should you do a search?

Before buying a used car or other used goods, consumers should do a Personal Property Security Act (PPSA) search to protect themselves financially. For example, a search may indicate that the seller or a previous owner has obtained a loan and that the lender may have rights in a used car that a consumer intends to buy. If so, the search results will enable the consumer to contact the lender to confirm whether or not the loan is still in effect, and to obtain further details. If the loan has been repaid, the buyer should insist that the seller require the lender to promptly register a discharge before the sale is completed. However, if there is an outstanding loan, the consumer may either decide against completing the sale or require the seller to arrange for payment of the loan as well as registration of a discharge.

If a lender has rights in the used car and a search is not done, the car could later be seized if the borrower fails to repay the loan. (Note: a search is not required when buying a new car or other new goods from the dealer. Consumers also do not need to search when buying a used car from a registered motor vehicle dealer in Ontario unless the car is worth more than $15,000. In that case, a VIN search should be done to determine if any previous owner gave a lender rights to the car.)

• PPSA Search Form