Retention of title (ejendomsforbehold)
Also known as retention of title, reservation of ownership, title retention clause, ejendomsforbehold, ejendomsret indtil betaling, salgspant
Retention of title means that the seller keeps ownership of the goods until they have been paid for — and can take them back if they never are.
In practice
Retention of title is the cheapest security available, and the most overlooked. It costs nothing to agree — it simply has to be written into your terms of trade and accepted by the time of delivery at the latest.
If the customer goes bankrupt, you are not standing in the queue with everyone else. You collect the goods. That is the difference between a 0 % dividend and getting your machine back.
It works best on identifiable goods that have not been consumed or built into something else.
Where it commonly goes wrong
- The retention is agreed after delivery. By then it is too late — it has to be in place by the time the goods leave the building at the latest.
- It appears only on the invoice. The invoice comes after the agreement. The retention has to be part of the contractual basis.