On 1 January 2018, the Law on movable Securities of 11 July 2013 and the National Pledge Register entered into force. Consequently, the pledge register is now 1 year old. Meanwhile the system counts almost 110,000 new registrations of pledge agreements and 80,000 consultations.
The introduction of the pledge register was the most important novelty because at the same time the non-possessory' pledge on movable property has been introduced.
This means that one can give something in pledge without having to hand it over to the creditor. As a pledgor it is perfectly possible to keep movable physical goods in its possession and to continue to use them, and in principle even to sell them, if this fits within the framework of a normal exercise of the business activities.
It was precisely for this reason that it was necessary to introduce a pledge register, namely to make the non-possessory pledge enforceable against third parties. You can read our article relating to the pledge register by clicking here.
In addition, a legal embedding of the retention of title arrangement and the right of retention which gives rise to the pledgee’s preferential right is introduced.
Apparently the possibility to register a retention of title was less used. That is why we want to draw attention again at this way to secure your goods after their delivery.
The registration in the pledge register of the retention of title is optional and therefore not mandatory. In some cases, however, registration is recommended, especially when for example movable goods are sold towards third-party professionals or when sold movable property becomes immovable through incorporation (eg parts and equipment of buildings such as kitchen cabinets, pipes, heaters, solar panels, etc.) .
What is added is that the retention of title can be invoked at any kind of concurrence of debts, and no longer only in case of bankruptcy. It can also be invoked in the event of collective debt settlement or seizure. And it comes even with priority over a mortgage creditor.
However, the only condition is that the retention of title was stipulated in writing no later than at the time of the delivery of the goods, for example in a quotation, in an order form or a delivery note. It is recommended to provide such clause in the general sales conditions that are on these documents.
Caution! The rules have become even more stringent if the buyer is a consumer. In that case, the buyer’s consent must be evidenced by the document itself. The retention of title therefore only applies if the consumer has explicitly signed his consent to it.
More about this is available by clicking on the following link.