# How to Run a Lien Search on Equipment Canonical URL: https://fundmyequipment.com/learn/lien-search-equipment/ Last modified: 2026-05-29T19:39:17+00:00 Type: efin_guide ## Summary How to Run a Lien Search on Equipment. Comprehensive guide. ## Content Running a UCC lien search on equipment before you buy is essential for private-party purchases and recommended for any used equipment over $10,000. A UCC search reveals whether an existing creditor has a security interest in the equipment, which could attach to your purchase if not resolved. What a UCC search shows A UCC search returns: Active UCC-1 financing statements filed against a specific debtor Filing date, secured party, and collateral description UCC-3 amendments, continuations, and terminations Sometimes: federal tax liens and state tax liens Filings are publicly available through each state's secretary of state. Why this matters at purchase If the seller has an active lien against the equipment and the lien is not satisfied at closing, the lien follows the equipment to you. The original lender can repossess the equipment from your possession even though you paid the prior owner. Example: You buy a $80,000 excavator privately for cash. Three months later, a lender shows up with a UCC-1 filed before the sale, claiming $45,000 balance owed. They can take the excavator. You lose it and have to pursue the seller (who may be uncooperative or insolvent) to recover. A pre-purchase UCC search catches this before you pay. Where to search For UCC-1 filings: Search the secretary of state where the debtor (seller) is "located" - for corporations and LLCs, that is the state of formation For individuals (sole proprietors), search the state of principal residence For multi-state businesses, search every state where the seller operates For titled equipment (vehicles, trucks, trailers): Verify the title shows no active lienholder Run a VIN check via NMVTIS (National Motor Vehicle Title Information System) State DMVs offer lien-search services How to run a UCC search Identify the seller's exact legal name (LLC, corporation, individual) Identify the state(s) where they are located Visit the secretary of state's online filing search portal Search by debtor name; results show all active and historical filings Review each filing's collateral description to see what is covered Check for any filings that could attach to the specific equipment Most state portals charge $5 to $25 per search. Reading the collateral description UCC-1 collateral descriptions can be specific or broad: Specific: "2019 Caterpillar 320 excavator, serial number XYZ123456" - only this exact unit is encumbered Generic equipment: "All excavators owned or hereafter acquired" - the equipment you are buying may be covered if it fits the description Blanket: "All equipment, accounts, inventory, and general intangibles" - likely covers everything the seller owns If the description is generic or blanket, the equipment you are buying probably has an active lien even if not specifically named. What to do if you find an active lien Three options: Buyer satisfies the lien at closing. Buyer wires payoff to the lender, balance to the seller. Lender releases the lien before equipment transfers. Most common path. Seller satisfies the lien before the sale. Seller pays off the loan from their own funds. Lien is released. Buyer purchases unencumbered equipment. Walk away. If the lien situation is messy or the seller cannot resolve it, find different equipment. Never pay the seller in full before the lien is released. If you do, you have no leverage to ensure the seller actually pays off the loan. Bonus search: state and federal tax liens Some secretary of state portals also surface tax liens. If not, search: Federal tax liens: County recorder where the seller's principal place of business is located State tax liens: State tax authority or secretary of state, varies by state Tax liens can take priority over other secured creditors in some scenarios. A tax lien on the equipment travels with it just like a UCC lien. Title issues for vehicles For trucks, trailers, and titled equipment, also check: Title is in the seller's name (not a third party) Title shows no active lienholder Title type is "clean" (not salvage, rebuilt, or junked) VIN on title matches VIN on equipment NMVTIS report shows no theft, total loss, or odometer issues Common search mistakes Searching only the state where equipment is located. UCC-1 is filed where the DEBTOR is located, not where the equipment is. A New Jersey LLC owning equipment in California files in New Jersey. Searching only the seller's "doing business as" name. The legal entity name matters, not the trade name. Not searching all relevant entities. Sometimes equipment is in one entity and the lien is on a related entity. Multi-entity sellers require searches on all relevant names. Trusting the seller's word. Many sellers are unaware of UCC filings they no longer use or never used. Verify independently. Professional lien searches For deals over $50,000 or complex multi-state sellers, consider a professional lien search service. Services like UCC Direct, CT Corporation, or your state bar's recommended search providers can do nationwide searches for $100 to $400. Worth it on larger deals. For your own equipment Run a UCC search on your own business name annually. Old filings sometimes linger after loans are paid off because lenders forget to file the UCC-3 termination. Stale liens on your record can affect future borrowing or sale flexibility. If you find one, contact the original lender and request termination. Action steps Confirm the seller's exact legal name and state of formation Search the secretary of state UCC portal Search relevant tax-lien sources For titled equipment, run NMVTIS or DMV lien check If any liens exist, structure the closing to satisfy them before title transfers