Check whether a buyer takes personal property free of a security interest
Key facts
- Human involvement
- YellowClose supervision
- How AI is used
- From the sale or lease contract and the registration, list whether the seller or lessor deals in property of that kind in the ordinary course of business, and whether either exception in the section is raised by the facts. The tool does not say that the buyer takes free.
- What the lawyer must review
- The lawyer decides whether the buyer or lessee takes free, and whether a proceeds interest under section 32 is also displaced.
- Written for / version
- US
Open a jurisdiction version of this task to see which instruments apply: US
Who does what
| Role | What they do |
|---|---|
| Assistance | From the sale or lease contract and the registration, list whether the seller or lessor deals in property of that kind in the ordinary course of business, and whether either exception in the section is raised by the facts. The tool does not say that the buyer takes free. |
| Lawyer | Set the scope, supervise the work closely, verify every part relied on, resolve omissions and exceptions, and approve the exact output. |
Checklist
- The buyer or lessee takes free of a security interest given by the seller or lessor, and of an interest arising under section 32, if the property was sold or leased in the ordinary course of that business of selling or leasing property of that kind.
- The rule does not apply where serial-numbered property is held as inventory, or for a person who would hold it as inventory.
- It also does not apply where the buyer or lessee has actual knowledge that the sale or lease breaches the security agreement.
- Other taking-free sections were not opened. Do not apply them from this note.
Sources
- Personal Property Securities Act 2009 section 46 · 2026-10-22
These are suggested working checks. Confirm the required checking with the responsible lawyer before work starts; the checking approach does not establish permission to use AI.