Property & Personal Property Transactions
Differentiating between Property and Personal Property Transactions
If you’re selling your old laptop on eBay or one of the other popular sites that offer the convenience of an electronic buy and sell service, you aren’t likely to engage the service of a lawyer, although a word of caution in completing the sale with your safety in mind is in order. On the other hand, most people seeking a mortgage – an instrument dealing with land, an immoveable object – instinctively know that they need the services of a lawyer; unfortunately, however, they might not realize that for many personal property transactions, they also need legal services. Unlike the eBay example, personal property transactions – which are moveable objects- can and do involve highly valuable property and complex contracts involving sales, leases, security interests, charges, mortgages and so on.
Given the complexity, as is the case with mortgages, these personal property transactions also require the services of a legal professional.
To prepare personal property transactions in Ontario, Howard Nightingale provides the following services:
- Draw the security agreement and include copies for registration purposes and financing statement
- Provide an extra copy of the security agreement for the borrower
- Conduct all appropriate searches
- Obtain all corporation status reports and other applicable reports and include taxes and/or rates constituting statutory liens
- Search for executions
- Obtain confirmation with respect to insurance coverage (if needed)
- Attend to all necessary registrations
- Reporting to client
Frequently Asked Questions
A statutory lien is a legal claim placed on property by operation of law (such as unpaid taxes or municipal rates) rather than by a private contract. We conduct searches to ensure these liens are identified and cleared during the transaction.
Yes. Howard Nightingale Professional Corporation offers secure electronic signature services (e.g., DocuSign) for documents related to Real Estate, Corporate, and Family law to make the process more convenient for our clients.
In many cases, especially those involving leases or security interests, confirming appropriate insurance coverage is essential. We help verify that the asset is protected against loss or damage before the transaction is finalized.
A search for executions is a check of court records to see if there are any outstanding judgments or writs against a person or corporation. This ensures that the property being transferred isn’t subject to seizure by a third-party creditor.
Yes. For transactions involving businesses, we obtain corporation status reports and other applicable filings to confirm the legal standing of the parties involved and identify any potential statutory liens.
To protect your interest, you must “perfect” your security interest. This typically involves drafting a professional Security Agreement and registering a financing statement under the Ontario PPSA system.
A Security Agreement is a legal document where a borrower grants a lender a “security interest” in a specific piece of personal property as collateral for a loan. If the borrower defaults, the agreement gives the lender the right to seize that asset.
PSA stands for the Personal Property Security Act. A PPSA search is a critical check to see if a piece of personal property (like a used car or business equipment) has been used as collateral for a loan. It ensures you aren’t buying someone else’s debt.
While buying a low-value item doesn’t require legal aid, high-value transactions involving leases, security interests, or complex sales contracts carry significant financial risk. A lawyer ensures the contract is legally sound and that the asset is free of “hidden” liens or encumbrances.
Real property refers to land and anything permanently attached to it, like a house or a commercial building. Personal property refers to movable assets, such as vehicles, machinery, equipment, inventory, or even digital assets.
Your information will always remain private and confidential.