Legal Question in Business Law in Arizona

UCC-1 Filings

If 2 people own a home in Arizona, but only 1 resides in the state and the 1 person that resides in the home purchases our water system & has it installed in home, can we put only the person residing in the home on the UCC-1 or do we need to put both of them on the UCC-1. Will it hold up in court if only one of the homeowners is on the UCC-1?


Asked on 6/05/09, 2:01 pm

1 Answer from Attorneys
Donald Scher Donald T. Scher & Associates, P.C.

Re: UCC-1 Filings

You always want both owners to sign. But the one homeowner will be sufficient, so that you can remove the water system if they fail to pay for it. The UCC filing evidences your collateral interest, in the event that the buyer files in bankruptcy or the house is sold. You must be very careful with today's housing market and with so many people walking away from a home which is now worth less than the first mortgage.

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Answered on 6/05/09, 2:21 pm


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