Want to know something crazy?
The amount of people in the equipment industry, whether dealer, broker, or end user, who have no idea that lien search even exists.
That is scary more than it crazy because of how much equipment is re-marketed in the USA. Too many buyers simply trust that the guy they buy from does the right thing. That means you should probably be asking more questions of the folks you are buying anything from.
What do you consider to be the right thing?Do you simply trust that if a creditor visits the seller you bought from that they are not give them your info since the lien follows that machine?
I have stories where people who bought from trusted sources sold each other out down through five dealers and brokers, even a small auction company, to the original seller. How did Ground Clearance get involved? The broker is a customer who called me after the deal was done.
Maybe instead of trusting a note stating the equipment is free and clear of encumbrance you should get one stating they won’t sell you out if they anything comes forward later. (FYI- Those notes are something you take to court, not something that keeps you out of court. Lien search is a better tool for staying out of court.) Contact Ground Clearance for lien searches on the seller of the equipment you are purchasing! Or tell the seller about Ground Clearance and have THEM get the lien search done before you purchase. Make it their cost of doing business.Ground Clearance had a booth at the Yoder & Frey Auction last February in Florida. We liked that space because for the most part attendees have to go down vendor row in order to get to the field where the auction takes place. No ramping of equipment there.
Besides the attendees looked at us like we were going to jump out and sell them insurance or annuities we did get some interest. The purpose of attending was for exposure to potentially new customers. Mission accomplished. We were seen and some approached.
My favorite was a guy from West Virginia who asked how fast I could get the information to him. I told him the West Virginia takes a few days. He said that wasn’t good enough because the guy he buys from sells on the dime and gets mad if someone does a lien search on him and he won’t sell to them anymore. My response: Find a new guy to buy from. One or more of those purchases will not end well. He doesn’t like it for a reason.
Happily, there were those who could use the service and we swapped business cards and business stories. There were even a few who do their own lien searches but had some questions to make sure they are doing all they can.
The last couple days of the auction we spent walking the field of sold equipment and meeting people next to the equipment they had purchased. Most did not know they could even get liens researched when buying equipment. They buy just hoping nothing comes back and get in touch with their lawyerwhen it does go wrong.
They were pleased to know the Ground Clearance is quite a lot less expensive and faster turnaround than their attorney. We are generally better versed in UCC Article 9 (Personal property) law than most attorneys. Why? Because it is what we do on a daily basis.
My request of you is that you start requesting the seller provide a lien search on the person/entity they bought he equipment from. Request a copy of the bill of sale proving ownership. Does that sound demanding? It is your money, your business, and your peace of mind. It is okay. Ground Clearance is happy to help. Call and ask how. 402-484-5071