Fixtures Filing – Mysteries Solved

Most equipment lenders and mortgage lenders have heard the term "fixtures filing", however many are unaware of the implications of filing a notice against land to protect an interest in personal property.

This article deals specifically with the Personal Property Security Act (Ontario) (the "PPSA") and the relevant provisions of the Land Registration Reform Act (Ontario), however most provinces with personal property legislation have similar concepts.

Section 34 of the PPSA is the governing provision. It provides that a security interest that attaches before the goods become affixed to land will have priority over all existing interests in land. Therefore, if you have financed the goods and have filed your financing statement under the PPSA before the goods become affixed, you will have priority over the current owner of the land and any existing mortgagees. However, if the land is sold or remortgaged at any time in the future, you will lose that priority to the