UCC and Due Dilligence
Missing even a single document can be detrimental to your due diligence process. And, when legal requirements are in a constant state of change, errors, omissions and risk can easily happen. Understanding the full scope of due diligence can help reduce risk. Working with a partner who performs timely and prompt due diligence, with accuracy at the forefront, offers confidence that it’s handled.
Performing a comprehensive search allows clients to be aware of issues that they are not required to be notified of such as a tax or judgement lien. Targeting the appropriate jurisdictions and lien types, we present granular level detail helping you make better business decisions for the following:
- UCC filing. UCC liens are filed with the Secretary of State. These filings are public notice and are typically filed by lenders with the debtor’s state when a loan is first originated. If the collateral is real property or affixed to real property (i.e. immovable), the lender may also file a UCC lien with the county recorder’s office where the property is located. A UCC filing search pprovides details to any interested party on the status of any open liens.
- Federal tax lien. A federal tax lien is the governments legal claim against property when a person or company neglects or fails to pay a tax debt. The lien protects the governments interest in the property, including real estate, personal property and financial assets.
- State tax lien. A state tax lien is similar to a federal tax lien; however it is filed by the state rather than the IRS. This would be applicable in states where businesses or individuals pay state taxes. When a state files a tax lien it is the state’s legal claim against the property when a person or company neglects or fails to pay a tax debt. The lien protects the states interest in the property, including real estate, personal property and financial assets.
- Fixture search Fixture filings are defined as the filing of a financing statement that includes items or goods that are or will be considered permanent fixtures to a property. Searches on fixture filings start at the recording office in the jurisdiction of the real property of the fixture.
- Judgement search. A judgement is a court order, determined by a lawsuit, entered against an individual or company. A judgement can be made on a broad range of lawsuits including, but not limited to, default on payment to a creditor. A judgement search is comprehensive of county, city, federal and US district court records.
- Litigation searches. A litigation search includes a thorough search of all presently pending claims, actions, suits, legal proceedings, arbitration or any other legal or administrative filings and can be conducted at the county, city, federal and US district court level.
- Bankruptcy search. Bankruptcy searches include a search of federal bankruptcy court filings offering information on whether any borrower has a reported petition of bankruptcy on file with the US States Bankruptcy Court.
But, we don’t stop there. In addition to the above, Computershare Corporate Creations provides real property searches to include:
- Owner verification. Offers necessary identification information of currently property owner along with legal land details.
- Open mortgage. Provides details of all currently open loan information and associated documents.
- 10-year grantee/grantor. Provides history of all property bought and sold by an entity or individual within a 10-year period.
- Ownership and encumbrance, residential and/or commercial. Provides current owner of all liens held against a property.
- Tax assessor. Provides information related to property tax being paid up to date along with assessed value of property.
- Assignment of chain for specific mortgage. Provides history of loans on record for identified property either residential or commercial.
- Chain of title search. Provides history of owners of record from a specified date for both residential and commercial property.
- Municipal lien. Provides details of any violations, permits, unrecorded liens, taxes and utilities specific to an identified property.
- Environmental Protection Agency lien. Evaluates past use of land and any recorded environmental cleanup liens, including a review of local land records.
- Mechanics lean. Provides information on any liens placed against a home or property by a contractor for work performed but unpaid.
- Flood zone. Provides information on property pertaining to documented flood records.
Additionally, Corporate Creations can perform Patriot act/OFAC search as requested.
Whether your search is for residential or commercial, at the county, state or federal level, Computershare offers due diligence services that are comprehensive and complete offering your confidence that your due diligence is handled.