UCC: What’s that? Even an intern can understand!
When buying a property and reviewing the title report you could discover something called a UCC filing attached, but what is it? A UCC, or Uniform Commercial Code, covers a list of laws on commercial transactions, such as the sale of products with encumbrances and loans.
However, in terms of strictly real estate a UCC filing is a public record showing that a borrower had offered up the property as collateral. Should the borrower default on the loan, then the lender can foreclose the property. In the Hilliker world the “property” is typically equipment or fixtures bought by the Tenant (by borrowing $’s) and installed in the building (i.e., a dentist’s chair). If the Tenant goes under, the UCC filing assures the lender that they can repossess the equipment and not the Landlord.
BUT BE WARNED! Your ace Hilliker agent in pursuit of his/her clients’ best interests, may find old UCC filings stuck to properties, even after the loan has been paid off! This is usually an oversight of cleaning the title after all debt is clear, and your Hilliker agent can and will help get it removed before it messes up your closing.
Please call your favorite Hilliker agent for more details!
Submitted by ace Hilliker Interns Kyle Clore and Meade Summers IV
