How do I run a PPSA registry search before buying a business’s assets?

Running the search is mostly a matter of choosing the right names and serial numbers and then reading the result with care. Why the search matters is covered in what a PPSA search is. How to run it depends on the province, because each keeps its own registry and reaches it in its own way.

Choose what to search by

Alberta’s registry guidance lists the searches on offer: by individual debtor name, by business debtor name, by serial number, by registration number, and for an expired or discharged registration. For a company, search its exact legal name as it appears on the corporate record, and any former or operating names the seller gives you. For vehicles and serial-numbered equipment, run the serial-number search as well, because it is a separate search from the name search.

Know how each province lets you search

In Ontario, Access Now lets you find out whether a lien has been filed, and the page tells users to follow its step-by-step instructions to get correct results. British Columbia designates online use for professionals with premium accounts, accepts a mailed request stating the search type and criteria, and returns results only by mail, so allow time. In Alberta you can search through any registry agent office. Your lawyer will know the route for the province that applies to your seller.

Read inexact results before relying on them

Alberta’s guidance says a result is an exact match, an inexact match or both, and that inexact matches may need checking. Its advice is to search again on the inexact name or run a registration-number search for that specific registration. Questions about a result go to the party that registered the interest, which is also the party that can say what is still owed and issue a discharge.

Decide what each registration needs

Ontario’s guidance, written for buyers of used goods, says that if a loan has been repaid the buyer should insist the seller have the lender promptly register a discharge before the sale completes. If a loan is outstanding, the buyer can walk away or require the seller to arrange payment and a discharge. The same two choices apply to every registration your search finds.