When you buy or sell property in Ontario, you probably think about land titles, mortgages, and liens. These are the traditional legal tools recorded in the Land Registry system.
But there’s another layer many people overlook: the PPSA registration.
The PPSA doesn’t deal with land itself. Instead, it governs personal property — things like equipment, fixtures, or receivables — which can play a big role in Ontario real estate deals. If ignored, PPSA registrations can cause financing issues, closing delays, or unexpected costs.
The Personal Property Security Act (Ontario) sets out how lenders and creditors record their interest in personal property.
Why it matters: PPSA establishes priority. If a borrower defaults, the registry shows which creditor gets paid first. Even though these registrations don’t show up on title, they can directly affect real estate transactions because personal property is often tied to a property.
It’s important to understand the difference. The Land Registry System in Ontario tracks ownership, mortgages, easements, and liens against land and buildings. The PPSA Registry, on the other hand, tracks secured interests in personal property, which does not include land.
This overlap matters when you’re dealing with items that are tied to real estate but not legally considered part of the land. For example, a commercial kitchen inside a leased restaurant may have equipment that is financed separately and secured under a PPSA registration. The same can apply to HVAC systems that are leased rather than owned, or to construction equipment and materials used by developers.
So, even if a property appears to have clear title under the Land Registry, a PPSA registration can still complicate the deal by creating claims on personal property attached to or used within the building.
PPSA registrations come up often during sales, refinancing, and development projects.
Because of these risks, Ontario lawyers almost always run a PPSA search alongside a land title search during due diligence.
PPSA registrations show up more often than you might think in Ontario real estate. They can cover fixtures and equipment such as refrigeration units or laundry machines, construction materials and equipment used as collateral for developer financing, or even appliances included in rental properties. Lenders may also register interests against rental income or receivables.
These types of claims never appear in a land title search, only in the PPSA system.
The main risks are hidden claims, financing challenges, and closing delays. A buyer may unknowingly acquire encumbered assets or face added costs replacing equipment later. Their lender may also refuse to advance funds until PPSA registrations are discharged.
The risks for sellers include last-minute surprises when the buyer’s lawyer discovers active PPSA registrations. This often results in delays in payment, as sale proceeds may be held in trust until discharges are confirmed. It can also reduce credibility, and in some cases buyers may even walk away from the deal if registrations aren’t resolved quickly.
Commercial real estate is where PPSA issues surface most often.
These registrations aren’t visible in land title searches, yet they can directly affect the financial health of a deal.
In Ontario, PPSA searches are done electronically through the government’s online registry and are usually handled by lawyers during due diligence.
A search can be run against an individual, a corporation, or a specific asset, and the results show any active registrations and the creditors who hold them.
For example, if a corporation selling a commercial property has equipment loans, the PPSA search will reveal those registrations, and the buyer will expect them to be cleared before closing.
The good news is clearing a PPSA registration is usually straightforward. Once the loan or obligation is paid off, the creditor must file a discharge in the PPSA system.
This often happens right before or on closing day when sale proceeds are used to repay debts. Lawyers may hold back funds in trust until proof of discharge is received.
Don’t wait until the last minute. Work with your lawyer to identify PPSA registrations early and contact creditors about discharge timelines. This helps avoid stressful last-minute negotiations.
Whether you’re a lawyer, agent, investor, or developer, PPSA registrations can’t be ignored.
It’s important to run a PPSA search alongside a land title search so nothing is missed during due diligence. Any registrations that show up should be addressed early in the process rather than left until closing day. Make sure your lawyer explains what each registration means and confirms that creditors file timely discharges once debts are paid. And if you’re buying, always insist that PPSA registrations tied to the property’s assets are cleared before releasing funds.
In Ontario real estate, PPSA registrations aren’t about land — but they can make or break a deal.
They affect equipment, fixtures, rental income, and construction assets tied to a property. For buyers, they represent hidden risks. For sellers, they can create closing delays. For landlords and developers, they’re both a protective tool and a potential liability.
The key takeaway is that a PPSA search should always be part of real estate due diligence in Ontario. By working with an experienced real estate lawyer, identifying PPSA registrations early, and ensuring timely discharges, you protect your investment and keep your transaction moving forward.
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