# Lien Search

Canonical URL: https://fundmyequipment.com/learn/glossary/lien-search/
Last modified: 2026-05-29T19:39:17+00:00
Type: efin_glossary

## Summary

Search of UCC filings to identify existing liens on equipment. Run before funding.

## Content

Lien search is the process of checking public records for existing liens on equipment or against a borrower. Lenders perform lien searches before funding to confirm they can take the position they need; borrowers should also perform searches before buying used equipment privately.
What gets searched

UCC-1 financing statements: searched at the state Secretary of State office where the debtor (the business entity) is registered
Title records: for titled equipment (trucks, trailers, vehicles), searched at the state DMV where titled
Federal tax liens: filed in state records or county records depending on state law
State tax liens: filed in similar locations
Judgments and litigation: court records search
Mechanic's liens: state-specific, sometimes county-level

Who performs the search

Equipment lender: standard pre-funding due diligence
Title insurance companies: for high-value titled equipment
Commercial title search services: for businesses buying equipment via brokers or private-party sales
Self-service: most state Secretary of State websites allow free UCC searches

How long it takes

Online UCC search: minutes
Title search via DMV: hours to days depending on state
Full multi-record search by professional service: 1-3 business days

What a clean lien search returns

No active UCC-1 filings against the specific equipment, OR
UCC-1 filings exist but have been terminated (UCC-3 filed)
Clear title with no DMV liens
No federal or state tax liens
No active judgments against the seller

Red flags from a lien search

Active UCC-1 from a prior lender that has not been released (seller has not paid off prior financing)
Federal tax lien against the seller (IRS has senior claim on all seller's assets)
Recently-filed UCC-1s suggesting financial distress on the seller
Mechanic's lien on the equipment from unpaid repair work

When to insist on resolution before closing
Any active lien on the specific equipment must be released before closing. The seller's blanket UCC-1 (covering all their business assets) is less critical; you can often work around it via a subordination or PMSI.