How do I get a UCC fixture filing released after inheriting property with a secured loan?: Clear a North Carolina fixture filing from the land records - Pennsylvania
The Short Answer
In Pennsylvania, a UCC fixture filing is typically cleared by filing a UCC termination statement (or obtaining a termination statement from the secured party) once the secured obligation is satisfied or the filing is otherwise no longer authorized. If the lender will not cooperate, the estate/heir may need counsel to evaluate whether the debt is actually still secured, who has authority to demand termination, and what court-backed remedies are available.
What Pennsylvania Law Says
A fixture filing is a type of UCC financing statement recorded to give notice of a security interest in goods that are (or become) attached to real estate (for example, certain equipment or installed systems). Even after you inherit the property, the filing can remain in the public record until the secured party files (or provides) a termination statement. Pennsylvania law also gives a debtor the ability to make a signed demand for termination in many situations when the secured obligation has ended.
If your question involves a filing recorded in North Carolina land records, Pennsylvania law may not control the release process in that county. However, if the transaction and parties are governed by Pennsylvania’s UCC (or you are dealing with a Pennsylvania filing office), the termination rules below are the starting point.
The Statute
The primary law governing this issue is 13 Pa.C.S. § 9513.
This statute establishes that, when the secured obligation is no longer owed (or the filing was not authorized), the secured party must file (or provide) a termination statement within specified timeframes after payoff or after receiving a signed demand, and that once the termination statement is filed, the financing statement ceases to be effective.
Why You Should Speak with an Attorney
While the statute provides the general rule, applying it to your specific situation is rarely simple. Legal outcomes often depend on:
- Strict Deadlines: Under 13 Pa.C.S. § 9513, termination obligations can be triggered by payoff and/or a signed demand, and timing can matter if you are trying to sell or refinance.
- Burden of Proof: You may need documentation showing the secured debt was paid, discharged in probate, assumed, modified, or otherwise resolved—and that the party you are dealing with is the correct “secured party of record.”
- Exceptions and cross-state issues: A fixture filing recorded in another state’s land records (your question mentions North Carolina) may require compliance with that state’s recording/UCC rules, and the correct remedy can depend on where the filing was made, where the real estate sits, and how the collateral is classified.
Because a lingering fixture filing can derail a closing, reduce sale proceeds, or create title objections, it is usually worth having a probate attorney coordinate with the lender, title company, and (if needed) local counsel in the state where the land records are located.
Related reading: How Do I Confirm Whether an Estate Property Has a Valid Lien Before Closing in Pennsylvania? and Why Isn’t an Inherited House a Probate Asset in Pennsylvania, and Can I Pay the Mortgage Without the Administrator?.
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Disclaimer: This article provides general information under Pennsylvania law and does not create an attorney-client relationship. Laws change frequently. For legal advice specific to your situation, please consult with a licensed attorney.