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Title Retention Agreement

There is an exception to this rule: if a contaminated property can become immobile through communitarianization. In this case, the property reserve must be registered in the record. This would not be the first time that a supplier of building materials has an elusive debt after the bankruptcy of a contractor. This is a basic ownership reserve clause that stipulates that the right of certain goods is withheld by the supplier until the payment is fully received. A basic red clause states that the legal ownership or ownership of the goods does not pass from the seller to the buyer until the buyer has paid for the goods. It is appropriate to include a right of the seller to enter the buyer`s premises in order to regain possession of the goods. This ensures that the seller did not commit an offence. The property reserve offers additional protection, provided it is registered in the register of consignments, but that this registration is not mandatory and remains an optional right. In addition, the property reserve applies regardless of the legal nature of the agreement in which it was incorporated. This means that it no longer applies only to a sales contract, but also to other agreements.

Although securitization clauses are conceptually simple, they are becoming more widespread, leading courts in a number of countries to crack down on clauses or call them an interest in security. It was pointed out that “the practical result of a number of subsequent cases is clear that the extended title booking clauses will not work.” [11] Several specific problems were identified: after the introduction of the Deposit Act, the property reserve finally obtained a legal framework for the more frequent and effective use of these obligations. Although the idea behind the red clauses is very simple, they are becoming more and more broad. As a result, such clauses have been redefined as a levy on goods and not as a reserve of ownership. When a tax is levied, the buyer takes possession of the legal ownership of the goods, but the seller reserves the right to seize the property and, as a rule, to sell it to pay the buyer`s debts. This distinction may seem subtle, but can be problematic, as a valid fee is subject to certain registration requirements. After a reserve of ownership of a given commodity has been entered on the record, it has priority over a mortgagee. It is clear from the parliamentary documents that this priority applies even if the registration is made after the mortgages have been registered, provided that the registration is made before the creation.

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