Who Owns the Tractor?

I live in NW Alabama and have bought, sold and traded many tractors and related equipment.
:?: How can a person know that a tractor does not have a lien against it? I always assumed a bank would not loan money on equipment, especially used.
I have asked dealers this question but have never gotten an answer I was comfertable with.

That's a question that's been going around for a long time, and answers are scarce as redneck quiche eating contests.

Guess it's up to the buyer to do a bunch of research.

If it's farm equipment and the farmer has an operating loan, you can bet that there's a lien against all the tractors and the equipment and the house and the land and the first child. It should be filed at the county register's office, if in the U S of A.

Pretty common here for the lein to include "all equipment owned" (and growing crops, cattle etc) but if they do not itemize and record serial numbers who's gonna know? To be on the safe side if you supect your seller just ask him whos banks name he wants on the check along with his own. That's what I do.

DISCLAIMER: Wellllllllllll, Secured Transactions WAS NOT my strong suit way back in Law School and I DO NOT practice in the area sooooooooo although this may still be considerd a "profesional opinion" I wouldnt value it much more then or perhaps even less then that of a lay person who has researched the question: That being said whewwwwwwwwwwww, here goes.

If a person or institution has a security interest in personal property such as say a tractor (Like the bank may take if they make a loan secured by the tractor), to be "perfected" it MUST BE FILED in the County.

Once filed, its a public record and therefore anyone with an interest or concern has "legal constructive notice" of the Lien created regardless if he bothers to look for it or not (regardless if he has "actual notice"), i.e as far as the law is concercned you have notice of the Lien because it was perfected by the holder when they filed the proper UCC form at the courthouse regardles if you looked or not.

Soooooooo if you buy such a tractor and the bank perfected their security interest, they have a superior right to the property (like for reposession) over you, even if you paid cash and have a receipt THATS WHAT YOU GET FOR BEING TOO LAZY TO SEARCH THE LIEN RECORDS

MY BEST ADVICE: Consult a local attorney who practices Secured Transactions (believe them over me and especially any lay opinions here) and learn the how to regarding searching for Lien records in your county.

PS as I recall if the bank fails to perfect their security interest then your lien may take prioroty.

WHO OWNS IT YOU ASK?????? The current "peaceful posessor's" rights are superior to all others but not withstanding any true owner. If it was stolen, the true owner has rights over a thief or later purchasers DUH buttttttttt a current peaceful posessor has rights over anyone other then the true owner.. The old wives tale "Posession is 9/10 of the law" isnt all that far off.

As far as priority of Liens, if its perfected by filing the UCC ITS FIRST IN LINE, if not then I believe its a race notice issue, first in line wins

Best wishes, hope this helps but remember this is not my area of law

John T BSEE, JD Attorney at Law

This must be bizzare week thirty years ago a neighboring competitive dealer we had a great relationship together with talked to us over a beer one night told us that his best customer went into the courthouse one day and cancelled his liens and then went home and grabbed his pistol went to the barn put it to his head and pulled the trigger. The credit company covered his loss but can that be done?

To go a step further, I wonder how many tractors are stolen? I seldom hear of a stolen tractor being recovered, so I figure they usually get hauled a few counties or states away, sold a few times, so the person has no idea they own a stolen tractor... Same story with stolen trailers, except multiplied by 10X or more.. Almost everyone here has had one or 3 trailers stolen, and they never get recovered, so I assume that close to half of the trailers are hot..

The Lienholder (the bank in a secured loan) is the only one who can issue the release,. Gee if we could release our own hmmmmmmmmmmmm lol There is a procedure to have a Court order it be released if you can prove the debt is paid but the bank refuses to do so.

John T

Don,t know about Alabama but Tennessee and Kentucky lein if ifled with the secdtary of state not the county.. Makes it a lot easier for
the UCC that is recorded on one specific tractor.
That like when an individual goes i to a dealership and buys a new tractor pretty easy to check. That other bucket of worms (operating loans) that carry that statement all otehr related farm equipment can become complicated.

I run in to that ever now and then on trade ins and I try to know my customer and his banker
before any big trades are put together.

You used to have to check at each county courthouse for the filing. Starting about five years ago all UUC-1s(equipment mortgages) are filed with each state's secretary of state. It was mandated by federal banking law. Here in Iowa you can do it by phone or Internet. I check just about all of the tractors I buy or trade.
Here is another twist. If you buy a piece of equipment at public auction it MAY not be lien free. Some states require the auctioneer to have a bond to protect the buyer but other states do not. Iowa is one of the ones that does NOT require it. Ohio does require it. Sheriff sales and Federal law enforcement auctions are all lien free too.

Good job for somebody. Start a TRACTOR FAX.

Go into the Register's office at your courthouse.
Tell them you want to look for liens on some property (tractors, etc.) that is for sale. They will ask you the name of the party, you tell them, and they hand you a real big book. Go thru the pages until you come to the party and it's all there in front of you.
This is no big deal to the personnel in the Register's office, happens all the time.
And...they have to help you with this...it's a nice law for your protection.
Just simply take the time to do this so you know for sure. I've done this often. You can even write down what you see, the personnel don't care as long as you don't try to walk out with their big book!
LA in WI

if you have a tractor with a missing serial number, it probly was stolen at some time.

Like most tractors in North mexico

As noted above, many states now have all personal property liens through the Secretary of State's office, not the county. When I started at PCA in 1974, all personal property liens were recorded at the county. Most were moved to the Secy of State shortly thereafter, but "fixture filings" remained at county for a few more years- then they went to the state, as well, and at least in Washington, there have been no personal property filings at courthouse for at least 30 years.

UCC-1 filings is what you want to search- Some states can be searched on line, some cannot. Call your county recording office first to see if your state is still filing at county level- if not, call Secretary of State to find out how to search.

Filings are by name of debtor. Don't know how you would check out a tractor before an auction, as you don't know the owner's name.