Three More Tips For Bulk Sale Escrow Officers In California – RevisitedMay 12, 2017 Due Diligence, Tips
Below is a repost of a popular post from last year for our California Bulk Sale Escrow Officers. We’ve been supporting Escrow Officers handling bulk sales for a quarter century, and over that period we’ve learned more than just a few things from our friends in the industry, and in this blog post we share three more tips for Bulk Sale Escrow Officers in California that we’ve learned and their importance.
Tip#1: ‘Reading’ Your UCC Search Report
Review Search Parameters – Be sure to check that the proper name was searched free of spelling errors, that the search was performed in the correct filing office and that all requested lien types were included in the search effort.
Note the Index Date – A UCC search should list an index date to inform you of how current the lien information is.
Examine the Results – You will need to examine the search results carefully to determine if an existing claim would jeopardize your ability to collect on debts, taking into account the filing date, collateral and status of any items listed on your search report.
Tip#2: When to consider searching officers, members and/or trustees of legal entities such as a Corporation, LLC or Trust
Generally, there is no need to search the officers, members or trustees of those legal entities. These business entities are considered legal operating entities with the ability to conduct business on their own. However, if a business was ever operated by the officers, members or trustees as sole proprietors then a search may be warranted to uncover possible liens created against the assets by the sole proprietor. A rule of thumb to follow is to err on the side of caution and ask your seller(s) the correct fact finding questions.
Tip#3: Search for Fixture Filings at the County Level
To uncover liens relating to collateral that is affixed to real property, be sure to search for fixture filing liens at the county level. Liens against fixtures are to be filed in the county where the collateral is located.
Do you have questions or comments? Contact us today! And if you have more tips for Bulk Sale Escrow Officers to consider, please share them with us.