We all buy properties and while we search for a property, we want to ensure one thing and that is if there is any existing lien on the property. If the owner of the property is paying installments to the lender then you will find the lender holding the first lien or else the title will be in the name of the owner of the house. However, if you see any more lien on the same property then you should get cautious and inquire about the other lien holder. You just can’t put your hands in a property that has multiple liens. The title of the house should be in the name of its owner and in your case the seller. Similarly when it comes to buying heavy equipment you got to maintain the same level of caution. You have to check the UCC on the heavy equipment and only if you see all is clear that you should go ahead with the deal.
Ask the seller to show you the papers:-
Once you have decided to buy a construction machine from a dealer or a contractor or an individual, you should ask if the machine solely belongs to him and once you get the answer in positive you should then ask for the papers. Go through the document and try to understand everything that is in there. Ideally the title papers of heavy equipment are not so lengthy and complex that a layman will have problem to figure out what is written in it. However, if you find something fishy in it that raises doubt you can ask him to give the photocopy of the document so that you can get it checked with an attorney or someone who has the ability to comprehend a legal document. It is only after you are completely convinced with the authenticity of the document that you should proceed.
Ample of problems with heavy equipment with more than one lien:-
If you intend to buy construction equipment that has more than one lien, you are seriously inviting for trouble. Any real property which also includes construction machineries and has more than one lien becomes difficult to identify the real owner of the property. On the contrary, every person who has a lien is the rightful owner of the property. This means if you buy the heavy equipment and pays the amount to the seller you still can’t claim to be its sole holder. People who have their liens on the machine will bug you for no fault of yours. It can even lead to legal proceedings which will further hamper your business.
Search the serial number on UCC “Uniform Commercial Code”:-
It is quite simple to identify the name of the UCC holder if you know how to browse internet. All you got to do is go to google and key in “Uniform Commercial Code”. There you will get to know if the machine has any liens on it. Other than that a bill of sale can also act as an evidence.