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Thank you for your answer.Can you you be more specific?How

 
JD 1992's Avatar
  • Answered by:JD 1992
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Customer Question

Thank you for your answer.
Can you you be more specific?
How does the lease continues to be secure if UCC filing is in the process of termination by foreclosure?

 

Optional Information:
Country relating to Question: United States
State (if USA): New Jersey

Already Tried:
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Submitted: 295 days and 23 hours ago.
Category: Legal
Value: $25
Status: CLOSED
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Expert:  JD 1992 replied 295 days and 22 hours ago.

Sorry about the delay. The moderators were nice enough to move the question so I could answer.

A lease only gives a party a "use" right not an ownership right and so the owner can recover the items regardless of the real estate being in Foreclosure.


We work for Positive Ratings, please click on Great Service, Informative and Helpful, or one of the Smile Faces, as this would be appreciated. Please bear in mind I can’t control what the law is and whether it helps you, I can only tell you what it says, and I assume you want truthful information.

PLEASE DO NOT use the rating system to ask for more information or in an attempt to tell the website that you didn’t like the substance of the answer as it gives a NEGATIVE rating if you answer either “Helped a Little” or “I Expected More”.

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Expert:  JD 1992 replied 295 days and 21 hours ago.

The feedback you left is a negative rating despite the fact that I answered your question both directly and correctly. Since the answer was direct and correct I am a little puzzled as to why it was rated negatively. Is there something additional I can provide?

Customer replied 295 days and 21 hours ago.

Sorry, I thought as attorney you might know...

I think I understand what the lease is (though in equipment lease once paid it is owned)

What specific document (title? UCC?) proves leasing company ownership? In what form they transfer the ownership right once the lease is paid?

Does leasing company would have still the right of reposes

 

once the new owner receives new title to the land, property, buildings and equipment once foreclosure is completed?

Looking forward,

Thank you,

BK

Customer replied 295 days and 21 hours ago.

Example,

After foreclosure, you become a new owner of commercial land, building and equipment (small portion of which is leased and not repaid yet). Does the leasing company have the right co come to this new owner to claim it? If so, then how (where is their title?, UCC proof, etc.?

Accepted Answer

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Expert:  JD 1992 replied 295 days ago.

Sorry for the delay, this got moved again and the moderators just moved it back.

There is no requirement that a UCC be filed because there was not purchase or sale of the goods with a lien against them, assuming it is a traditional lease. The equipment doesn't belong to the person that owns the property being foreclosed on. Since they don't own it, no one else can acquire title to it through them. It would be the same as if a neighbor loaned them their car and it was parked on the Driveway of a house when it was foreclosed on.


If you would like any additional information or have more questions please don’t hesitate to ask but please do so my clicking on the Reply to Expert tab.

We work for Positive Ratings, please click on OK Service, Good Service, Excellent Service, or one of the Smile Faces, as this would be appreciated. We have recently implemented a new rating and feedback system. Please be aware that you are rating my courtesy and service as a professional, and not necessarily whether you like the information that you are receiving. Please bear in mind I can’t control what the law is and whether it helps you, I can only tell you what it says, and I assume you want truthful information.

PLEASE DO NOT use the rating system to ask for more information or in an attempt to tell the website that you didn’t like the substance of the answer as it gives a NEGATIVE rating if you answer either “Helped a Little” or “I Expected More”.

Expert TypeAttorney
Category: Legal
Pos. Feedback: 97.6 %
Accepts: 11241
Answered: 6/22/2012

Experience: Began practicing law in 1992

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