Uniform Commercial Code Filing Information
UCC fixture filings are needed because: fixtures occupy a middle ground between real and personal property (they are personal property that has been attached to real property), a mortgage covers the real property and its fixtures but a UCC filing provides additional protection (by: perfecting the security interest under both real property law and the UCC, and establishing priority over other secured creditors), and the UCC filing must be made in the county where the real property is located (unlike standard UCC filings, which are made at the state level). Common fixtures requiring UCC filings include: commercial HVAC systems, elevators and escalators, industrial equipment affixed to the building, signage, and specialized manufacturing equipment.
Florida Legal Definition
UCC fixture filings in Florida are governed by: Florida Statutes §679.5021 (UCC Article 9; Fixture Filing). Under §679.5021: a fixture filing must be filed in the office where a mortgage on the real property would be filed (the county official records), the filing must describe the real property (with a legal description sufficient to identify the property), and the filing perfects the security interest against: real property claimants (mortgagees, judgment lienholders, and subsequent purchasers) and other secured creditors claiming the same collateral. Under §679.3341: a purchase money security interest in fixtures has priority over a prior recorded mortgage if: the UCC filing is made within 20 days of the fixtures becoming affixed to the property.
How It's Used in Practice
In practice, attorneys file UCC fixture filings for lenders. The attorney: identifies the collateral that qualifies as fixtures (applying the Boyer three-factor test: annexation, adaptation, and intent), prepares the UCC-1 financing statement (including the real property description and the debtor information), files the statement in the county official records (where the real property is located), monitors the filing's continuation (UCC filings must be continued every 5 years), and enforces the security interest upon default (the lender may remove the fixtures or foreclose on them). Common issues include: the classification of items as fixtures vs. personal property (which determines whether a UCC filing is needed), the priority of the fixture filing against the mortgage (the UCC filing must be timely to establish priority), and the borrower's removal of fixtures (which may constitute waste or a default).
Key Takeaways
- UCC fixture filing: security interest in personal property affixed to real estate.
- Filed in county official records (not state-level UCC filing).
- Must include real property legal description.
- Purchase money security: 20-day priority window (§679.3341).
- Continue every 5 years to maintain perfection.
Disclaimer: The information and opinions provided are for general educational, informational or entertainment purposes only and should not be construed as legal advice or a substitute for consultation with a qualified attorney. Any information that you read does not create an attorney–client relationship with Barnes Walker, Goethe, Perron, Shea & Johnson, PLLC, or any of its attorneys. Because laws, regulations, and court interpretations may change over time, the definitions and explanations provided here may not reflect the most current legal standards. The application of law varies depending on your particular facts and jurisdiction. For advice regarding your specific situation, please contact one of our Florida attorneys for personalized guidance.
Business Attorneys
Real Estate Attorneys
Litigation Attorneys
Estate Planning Attorneys
Business Sale Closings
How to Sell a Business in Florida
Contact Information:
Tel: 941-867-7818
Email: info@barneswalker.com
Trust • Experience • Results