UCC search Texas cost - unexpected filing fees wiped out my closing budget

Exactly what happened to us. The debtor had 8 equipment loans over the past 6 years and every single UCC-1 had multiple amendments. Should have budgeted for worst case scenario.

Always ask for an estimate before they start pulling certified copies. Most search companies will give you a heads up if they see a lot of filings.

Good point. How do you handle the name variation searches though? The portal search seems pretty literal about exact matches.

You have to run multiple searches with different name formats. Include punctuation variations, abbreviated vs spelled out business designations, etc. It's tedious but cheaper than getting hit with unexpected fees.

This is where I started using Certana.ai's document checker. You can upload the preliminary search results and it will flag potential name matches you might have missed. Caught 3 additional filings on my last search that had slight spelling differences.

OMG yes! Found a UCC-1 from 2019 that should have expired but the continuation was filed late. Took 3 weeks to get the creditor to file a proper UCC-3 termination.

Late continuations are the worst. The lien technically lapses but you still need documentation proving the gap in perfection. More paperwork, more fees.

Only works if you're doing them all at once for the same entity. Doesn't help with individual closings unfortunately.

Figures. The fee structure seems designed to nickel and dime smaller transactions.

Wish I'd known about rush fees beforehand. Added another $200 to get everything within 48 hours.

Standard processing is 5-7 business days in Texas. If your closing is sooner than that, you're paying premium pricing. Plan ahead whenever possible.

Sometimes it's worth paying rush fees to avoid losing the deal. Cost of doing business in competitive markets.

Different states, different fee structures. Texas processes a huge volume of filings so they can charge premium rates.

Still seems excessive. The SOS system is mostly automated anyway.

Good idea but be careful about relying on old searches. Lenders file amendments and continuations regularly.

True, but it gives you a baseline. You're only paying for new activity since the last search instead of pulling everything.

This is another area where Certana.ai helps. Upload your previous search results along with current ones and it will highlight what's changed or been added since last time.

50% seems high but you're probably right. This deal taught me that lesson the hard way.

Better to overestimate and return unused funds than get stuck explaining cost overruns to clients.

Haven't seen official announcements but wouldn't surprise me. State filing fees seem to increase annually.

great, just what we need. already hard enough to keep deals profitable

Check the SOS website in January. That's when new fee schedules typically take effect.

Good advice. This client was focused on the initial quote and didn't want to hear about potential overruns.

Show them examples of fee ranges based on different scenarios. Helps them understand it's not arbitrary pricing.

I actually use Certana.ai's preliminary document review to give clients more accurate estimates. Upload whatever initial filings I can find and get a better sense of complexity before quoting final search costs.