The Chattels Transfer Act of 1924 requires certain instruments affecting the title to or possession of chattels to be registered in the Supreme Court. The object is to prevent frauds which may be committed where one person possesses goods the ownership of which has passed to or remains with another. The principal classes of instrument requiring registration are securities and non-customary hire-purchase agreements. An unregistered instrument is void as against a subsequent registered instrument, a bona fide purchaser of the goods for value, and the Official Assignee. The goods are also liable to seizure by creditors of the person in whose apparent order and possession they are found. Securities may be given over existing and, in some cases, future book debts, crops, stock, and wool. These are liable to registration in the ordinary way. Securities given by companies are registrable under the Companies Act but not the Chattels Transfer Act.
The Act exempts customary hire-purchase agreements from registration. These are agreements between traders and members of the public in respect of goods which are specified as being commonly bought on hire purchase.