Buying Used Landscape Equipment? Protect Your Business from Liens
- Be cautious when buying used landscape equipment as there may be hidden liens attached to the equipment.
- Blanket liens, which cover multiple assets of a business, can go back several years.
- Liens can result in financial losses and legal complications for the buyer.
- Perform a lien search before purchasing any used equipment to ensure there are no outstanding liens.
- Hire a professional lien search service to thoroughly investigate the equipment’s history.
- Consider purchasing from reputable dealers or individuals who can provide documentation proving clear ownership.
- Include a clause in the purchase agreement that holds the seller liable for any undisclosed liens.
- Obtain a warranty from the seller that guarantees the equipment is free from any liens.
- Consider purchasing new equipment or leasing if there are concerns about the used equipment’s lien history.
When buying used landscape equipment, it is crucial to protect your business from hidden liens. Conduct a thorough lien search, hire professionals if necessary, and obtain documentation or warranties from the seller to ensure clear ownership. By taking these precautions, you can minimize the risk of financial loss and legal complications associated with undisclosed liens.