The client should be notified of a property reserve clause before or when the contract is concluded, so that it is enforceable. It is advisable to include these clauses in the terms and conditions of sale rather than an invoice. For example, a contractor who makes building materials available in addition to providing his services may impose the property reserve. In the past, this has led to discussions. If a number of sellers sold identical pieces of wood to a buyer that were not identified or identified separately, this would render any ownership reserve clause unenforceable, because even if the goods were always in the same form as when they were delivered, it is not possible to distinguish who owns the wood. However, one possible way to circumvent this issue would be the requirement for the buyer to identify the seller`s goods and keep them separately on their premises at any time. Sellers and suppliers of furniture assets can solve problems caused by poorly paid customers by a property reserve clause. This clause contractually allows it to be found that ownership of a particular commodity is transferred only after the third-party purchaser has paid full price. A property reserve clause (ROT) is a provision of a contract for the sale of goods, which means that the seller retains legal ownership of the goods until certain obligations of the buyer are fulfilled – usually the payment of the purchase price. This guide discusses the red clauses, in particular the relationship between these clauses and the unlawful act of transformation (see below).

In order for property reserve clauses to be enforced, the following restrictions must be overcome. A property reserve clause may be inadequate in certain circumstances, for example. B if the goods in issue are perishable or have a low resale value. In such circumstances, it would be wiser to simply require payment before delivery or to reduce the duration of the credit in order to reduce the risk. Credit control systems should be in place to ensure that there is no accumulation of goods in the hands of the buyer without payment, and it may be reasonable to require the buyer to be insured to take out credit insurance or provide some guarantee through a registered tax on his assets or to provide a mother or bank guarantee to the seller. Where the offending goods may become immobilized by insemination, the property reserve must be recorded in the mortgage register. 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. 3. Ordinary transaction – if the buyer resells the goods before payment and the seller is aware of it, it is likely that any ownership reserve clause will not apply. A reserve of ownership clause is a provision in a contract that the ownership of the goods will not be transferred to the new owner until it is fully paid.