Search Notice

A search notice in relation to the Personal Property Security Registry (PPSR) of the Philippines pertains to the procedure of inquiring or searching the registry to acquire details about registered security interests in personal assets.

Key Points about Registration of Notice in PPSR:

  1. Purpose:
    • To verify if a personal property (e.g., equipment, vehicles, inventory) is subject to an existing security interest or lien.
    • To check the priority and claims of secured creditors before entering into a financial transaction or acquiring personal property.

2. Types of Searches:

Searches in the PPSR can be conducted using different criteria:

  • Notice Registration Number / Transaction Number

Advance Search:

Type:

  • Consumer Property
  • Commercial Property

Class:

  • Motor vehicle
  • Agriculture
  • Other goods
  • All present and after acquired property (All-PAAP) no exceptions
  • All present and after acquired property (All-PAAP) with exceptions
  • Account
  • Intellectual property – Patent
  • Intellectual property – Utility Model (UM)
  • Intellectual property – Industrial Design (ID)
  • Intellectual property – Trademark
  • Intellectual property – Copyright
  • Intellectual property – Geographical Indication (GI)
  • General Intangible
  • Investment Instrument
  • Intermediate security
  • Currency
  • Chattel paper
  • Documents of Title 
  • Others
  • Property Identification
  • Collateral Details
  • Term Start Date and Term End Date

3. Process:

  • Online Access: The PPSR is typically accessed through an electronic platform managed by the Land Registration Authority (LRA).
  • Input Search Criteria: Users enter relevant details
  • Search Report Generation: The system generates a report detailing any existing security interests linked to the search parameters.

4. Contents of a Search Notice:

A search notice typically includes:

  • Names of the Secured Party and Grantor.
  • Collateral Description: A brief identification of the property under the security interest.
  • Registration Number and Date of Registration.
  • Term of Registration or expiration date of the security interest.

5. Use Cases:

  • Lenders: To assess the risk of lending against already encumbered assets.
  • Buyers: To confirm that property they intend to purchase is free of claims.
  • Businesses: To check the credit status and encumbrances of potential partners.

6. Legal Implications:

A search notice informs interested parties of existing claims but does not guarantee clear title to the property. Proper due diligence includes reviewing the actual registration notice linked to the search results.