20 February 2015
A vendor is selling a property used as a restaurant, in which the former tenant left behind commercial kitchen equipment. The vendor has no interest in finding out whether there are any serial numbers or PPS registrations over this equipment, but simply wants any purchaser to use it at their own risk. Is it permissible to exclude the operation of the PPSA by stating in the contract that GC 7 does not apply, so that the vendor is not obliged to obtain any releases whatsoever?
Essentially, the parties are free to contract on terms that they agree. If a purchaser is prepared to contract without any rights in relation to personal property and the PPSA, then so be it.
It would be wise for the vendor to specifically provide that the sale does not include any chattels/goods/personal property.
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