What is a romalpa clauses?
Romalpa clauses make it easier for sellers to take possession of products not fully paid for by buyers. A romalpa clause is a provision in a contract for the sale of property that keeps title to that property in the seller, until the final payment is made. Without this clause, title to the property passes to the buyer when the buyer takes delivery, even it the property is not fully paid for when the buyer takes possession of it.. This is a device that makes it easier for sellers to take property back without having to jump through the normal hoops for repossession. They have a right to possession, because they still own it. Before 2002, these clauses gave the seller a superior claim to secured creditors in the case of the buyer’s bankruptcy. However, under the 1999 Personal Property Securities Act (effective 2002) the interest of the seller must be registered in the Personal Property Securities Register for the seller to be protected against claims of secured lenders who have a securit
