Buying a Business in SA: 3 Essential Equipment Checks

Legal Video Guides › Buying a business in SA

By Manal Amro, Principal Solicitor, PA Law Pty Ltd. Updated 16 October 2026.

Watch: 3 equipment checks before buying a business in SA

Watch the business equipment video on YouTube.

What should you check before buying business equipment?

This guide focuses on equipment in a business asset purchase. The coffee machine behind the counter, an oven in the kitchen or a fridge on the shop floor may be essential to daily trading. Seeing an item in use does not tell you what rights the seller can transfer.

1. What equipment is included in the sale?

Ask for a written asset list that identifies the items included and excluded. Descriptions, makes, models and serial numbers where available help distinguish one item from another. Match the list to what you inspected and raise any missing equipment before signing.

Consider condition as well as inclusion. Ask whether an item is working, whether servicing records are available and what the contract says about its condition at settlement. A technical inspection may be appropriate. The Australian Government’s buying an existing business guide includes the status of plant, equipment and fixtures among the due diligence questions to consider.

2. Who owns each item, and can you keep using it?

Request the available purchase records and details of hire, lease or supplier arrangements. Equipment may be owned by another party even when it has been used in the business for years. Confirm any consent, transfer or new agreement needed for continued use after settlement.

Illustrative example: a café’s coffee machine is supplied under an agreement with its coffee supplier. The buyer needs to check that agreement, the supplier’s requirements and the ongoing costs. The machine’s presence on the counter alone does not establish that the seller owns it or that the buyer can keep using it.

Tell your solicitor which items are essential for opening on the first day. Agree who will obtain documents and consents, what must happen before completion, and how any unresolved item will be dealt with in the contract. General background on equipment arrangements is available in business.gov.au’s leasing and buying guide.

3. Are there registered security interests to address?

Equipment can be subject to a security interest connected with finance or another obligation. Appropriate Personal Property Securities Register searches can help identify registered interests. Ask your solicitor to consider the correct searches, their timing and what the results mean for your transaction.

A registration needs to be assessed against the seller, the equipment and the proposed sale. Your solicitor can advise whether a release or another arrangement is required as part of settlement. The applicable rules and buyer protections depend on the circumstances.

A clear search is not proof of ownership. The PPSR is not an ownership register. Keep ownership checks and contract review alongside the searches.

Buyer’s equipment checklist

Use these questions to prepare for an appointment. Record the response and the supporting document for each important item.

What to ask before committing to a business purchase
Check	Question for the seller or adviser
Inclusions	Is every essential item identified in the contract?
Exclusions	What will be removed or retained by someone else?
Ownership	What records support the seller’s right to sell?
Third-party use	Are consents, transfers or new agreements required?
Finance	Which searches and release arrangements are appropriate?
Handover	Who will provide keys, manuals and relevant records?

Read the video script

You’re buying a café. The coffee machine, ovens and fridges are all there.

But does the seller actually own them—and are they included in the sale?

Before you sign, check three things.

First, what are you buying? Make sure the contract clearly lists the equipment included and anything excluded.

Second, who owns it? Some equipment may be hired, leased or supplied by another business. You may need consent, a transfer or a new agreement to keep using it.

Third, is it subject to finance? Searches of the Personal Property Securities Register—the PPSR—can help identify registered security interests. Your solicitor should check whether releases are needed as part of settlement.

Don’t assume everything you see belongs to the seller—or will become yours.

At PA Law, we can review your business purchase contract and help you understand what needs to be checked before you commit.

Frequently asked questions

When buying a business in SA, do I automatically own all the equipment?

No. Equipment on the premises may be excluded from the sale or belong to a hirer, supplier, landlord or another third party. Check the contract’s asset list, ownership evidence and any relevant agreements before committing.

Does a clear PPSR search prove the seller owns the equipment?

No. The PPSR records security interests; it is not an ownership register. Appropriate searches are one part of the review and should be considered alongside ownership documents and the sale contract.

Can I keep using equipment that the seller hires or leases?

That depends on the agreement and the owner’s requirements. You may need consent, an assignment or a new agreement. Confirm the arrangements and costs before assuming the equipment will remain available after settlement.

What if a PPSR search shows a registered security interest?

Ask your solicitor to review the registration, the assets it covers and the proposed sale. They can advise whether a release or other settlement arrangement is needed. A registration does not automatically mean the transaction cannot proceed.

What documents should I give my solicitor before buying a business?

Provide the draft contract, equipment list, available ownership records, hire or finance agreements, relevant supplier arrangements and proposed settlement date. Flag any equipment essential to operating the business.

Can PA Law help with a business purchase in South Australia?

PA Law can review your business purchase contract and advise on legal checks concerning equipment, third-party arrangements and settlement requirements. Contact the firm before signing so the scope of advice and any deadline can be discussed.

Get legal advice before buying a business in SA

PA Law assists business buyers and sellers in Evanston South, Gawler, Adelaide and across South Australia. Our commercial legal advice can help you understand the contract and identify legal issues before you commit.

Send the proposed contract, equipment list and related agreements, and explain any signing or settlement deadline. If the business operates from leased premises, also discuss the commercial lease and any required landlord consent.

Discuss your business purchase or call 0431 614 696.

Read the full business purchase article

For the wider transaction, read Buying a Business in SA: 10 Essential Checks Before Signing. It covers leases, employees, licences, Form 2 disclosure, contracts and settlement, with a practical document checklist.