UCC search Maryland debtor name variations causing problems

That's what I was afraid of. So you literally run like 10+ searches for each debtor? This is for a $180k equipment purchase so I can't afford to miss anything.

For that amount absolutely. I've seen deals fall apart because someone missed a UCC-1 filing under a slightly different name variation. Maryland doesn't make it easy.

Good point, didn't think about DBAs. This is getting complicated fast.

DBA filings are usually at the county level too, not just state level. More places to search unfortunately.

That sounds like exactly what I need. How does it work exactly? Just upload PDFs?

Yeah, super simple. Upload the articles of incorporation or operating agreement and it pulls out all the legal names and variations, then runs the searches automatically. Much better than trying to guess all the possible variations manually.

Wish I'd known about that tool six months ago. Would have saved me from the nightmare of trying to track down every possible name variation for a multi-entity deal.

Right, the 5-year rule. So if I find a UCC-1 from 2019 with no continuation, it should be lapsed by now?

Exactly. Unless they filed a continuation before the 5-year mark, that lien should be terminated. But always double-check the dates because some states have different rules for fixture filings.

Good thinking about parent companies. This is a small family business but they might have related entities I don't know about.

Family businesses are tricky that way. Sometimes they'll have multiple LLCs for different purposes but use equipment across entities.

And don't assume the UCC filing will be under the entity that actually owns the equipment. Sometimes it's filed under a parent or guarantor company.

Unfortunately this is a private sale so no warranties. Just have to do the due diligence myself.

Ugh, those are the worst. At least with dealer sales you usually get some protection. Private sales are all on you to find any problems.

This company has been around since the 90s so that's definitely possible. Never thought about pre-electronic filings still being active.

Most of those old filings should have lapsed by now unless they were continued, but it's worth checking especially for larger equipment purchases.

Maryland's pretty good about digitizing old records but sometimes the indexing is inconsistent. Better safe than sorry on a $180k deal.

I've thought about it but trying to keep costs down. How much do those services usually charge?

Depends on complexity but usually a few hundred dollars for a comprehensive search. Cheap insurance on a $180k purchase.

Company has always been Maryland-based but good point about checking other states if they do business elsewhere.

Right, and if they have any out-of-state locations or subsidiaries, those might have separate UCC filings you'd need to check.

Don't forget about federal tax liens either. Those don't show up in UCC searches but can still attach to business equipment.

Seems like a few people have mentioned that tool. Might be worth trying since this is such a big purchase.

Yeah, especially for equipment deals where you really can't afford to miss existing liens. The automated cross-checking catches things you might overlook doing manual searches.

Great advice. I'll make sure to screenshot all my search results and keep detailed notes.

Exactly. And date everything. Shows you did your searches close to the closing date, not months earlier when things could have changed.

Also run your searches right before closing, not just during initial due diligence. New UCC filings can pop up between contract and closing.