You keep title
A valid ROT clause keeps ownership with you until you're paid in full.
Unpaid goods
Retention of title: recovering goods you haven't been paid for
A retention-of-title clause can let you reclaim goods when a customer doesn't pay. Here's how ROT works, why registration matters, and how Merion helps.
A retention of title (ROT, or Romalpa) clause is a term in your conditions of sale that says ownership of the goods stays with you until you have been paid in full. If a customer fails to pay, a valid ROT clause can give you a right to recover the unsold goods rather than rank as an unsecured creditor for their value — a materially better position, especially if the customer is heading toward insolvency.
In practice, ROT rights are closely tied to the Personal Property Securities Act. To be reliable against a customer's administrator or liquidator, an ROT interest generally needs to be registered on the Personal Property Securities Register (PPSR), and registered correctly and in time. Merion works overdue accounts where ROT may apply, coordinates the demand and, where appropriate, the return of goods. This is general information, not legal advice — the strength of a specific ROT claim should be confirmed with a qualified solicitor. Start by referring the account.
How it works
Reclaiming unpaid goods
Registration matters
To hold up in an insolvency, an ROT interest usually must be PPSR-registered correctly and in time.
Better than unsecured
Recovering the goods can beat ranking as an unsecured creditor for their value.
No recovery, no fee
We work overdue ROT accounts on commission only.
Sold goods you haven't been paid for?
Refer the account and we'll pursue payment — or the goods — professionally.
Common questions
Frequently asked questions
What is a retention of title clause?
A term in your conditions of sale stating that ownership of the goods remains yours until the customer has paid in full, giving you a potential right to recover the goods if they don't.
Do I need to register on the PPSR?
Generally, yes — to be reliable against an administrator or liquidator, an ROT interest usually needs to be registered on the PPSR correctly and in time. A solicitor can confirm for your situation.
Can Merion help me get the goods back?
We work the account, make a professional demand and, where appropriate, coordinate the return of goods. We'll tell you honestly whether the claim looks viable.
Is this legal advice?
No — this is general information only. For advice on a specific ROT claim, consult a qualified solicitor.
Get started
Unpaid for goods you supplied?
Refer the account for a free appraisal.