Dec212025
Real Estate Q&A Series

What can I do if the creditor or trustee won’t respond to issue a UCC release and we risk losing our buyer? – North Carolina

Short Answer

In North Carolina, a recorded UCC fixture filing for items like solar panels can block a sale until the secured party of record files a UCC termination or release in the county real estate records. If the lender or trustee will not respond, the fastest practical options usually involve (1) identifying the current secured party of record and making a documented payoff demand, and (2) using a formal, proof-of-receipt written demand that triggers statutory consequences when a creditor fails to record a release after payoff. When the identity of the real lienholder is unclear because of assignments, counsel often has to rebuild the chain of who has authority to accept payment and sign the release before closing can move forward.

Understanding the Problem

In North Carolina real estate closings, a buyer’s title insurer and closing attorney often require clear evidence that any recorded lien against the land—or against fixtures attached to the land—will be removed at or before closing. This issue commonly comes up when a creditor recorded a UCC fixture filing against installed equipment (such as solar panels) and later stops responding after the loan is assigned. The decision point is whether a seller can force or substitute for a recorded termination or release quickly enough to deliver marketable title before a scheduled closing date.

Apply the Law

North Carolina treats recorded encumbrances as serious title issues until the public record shows a release, termination, or other legally effective satisfaction. Even if an estate denied a claim, a recorded fixture filing can still appear in the chain of title and must be addressed to satisfy the buyer’s lender and title insurer. When the underlying obligation has been paid (or can be paid), North Carolina law provides mechanisms to demand that the party holding the lien submit a release for recording within a set timeframe, and it can impose liability if the creditor fails to do so after proper notice.

Key Requirements

  • Correct lienholder identity: Payment and release authority must match the “secured party of record” (or its properly documented successor). Assignments and servicing arrangements often cause delay because a collection agency may not have authority to sign a release.
  • Documented payoff/satisfaction: The party handling closing typically needs reliable, verifiable evidence of the payoff amount and proof of funds delivery to the party authorized to accept payoff.
  • Recorded termination/release: Clear title usually requires a termination or release to be recorded in the county Register of Deeds where the real property is located (and not merely an email stating the loan is “paid”).

What the Statutes Say

Analysis

Apply the Rule to the Facts: The property has a recorded UCC fixture filing tied to solar panels, and the sale is delayed because the record still shows an encumbrance. Because the original lender assigned the loan and the current decision-maker is unresponsive, the key requirements become (1) identifying who has legal authority to accept payoff and sign the termination/release and (2) creating a record that a proper payoff demand and release demand were made with proof of receipt. If the closing attorney will not accept payment through a collection agency, the practical path is to establish the correct secured party of record (or obtain assignment documentation) so the payoff can be sent to the entity that can also sign the release.

Process & Timing

  1. Who files: The secured party of record typically files the termination/release; in some situations, a landowner-authorized satisfaction agent may proceed with a statutory notice-and-affidavit process. Where: North Carolina county Register of Deeds (for recording in the real property records), and the North Carolina Secretary of State filing system may also be involved depending on how the fixture filing was made. What: A UCC termination (and, if required by the title insurer, a recorded release referencing the original recording data). When: If full payoff has occurred, North Carolina law generally expects the creditor to submit a release for recording within 30 days, and additional consequences can apply after a documented demand and another waiting period.
  2. Build the authority trail: Confirm the “secured party of record” shown on the fixture filing and obtain assignment documentation showing who currently owns the debt and who can sign. If servicing has changed, obtain written confirmation that the payee has authority to accept payoff and direct the filing of a termination/release.
  3. Send a formal demand with proof of receipt: Send a written payoff and release demand to the secured creditor at the address used for payoff/release requests (or the best verified address available). If proceeding through a satisfaction-agent route for real property instruments, send the notice of intent to record an affidavit of satisfaction and allow the statutory response time.

Exceptions & Pitfalls

  • Wrong party paid: Paying a collection agency without written authority from the secured party of record can leave the lien in place and create a second dispute about whether the payoff was valid.
  • Fixture filing vs. deed of trust rules: A UCC fixture filing and a deed of trust are different tools. A closing may require action both in UCC records and in the county land records, depending on what was recorded and how it was indexed.
  • Incomplete notice package: When sending statutory notices, missing the correct recording references, party names, or proof-of-receipt method can delay the ability to rely on statutory remedies.
  • Estate denial does not erase recorded liens: A denied estate claim may prevent payment from estate assets, but it does not automatically remove a recorded fixture filing from the public record.

Conclusion

In North Carolina, a recorded UCC fixture filing usually must be terminated or released in the public record before a closing can deliver clear title. When the lender, assignee, or trustee will not respond, the practical solution is to identify the secured party of record, make a documented payoff/release demand, and use a proof-of-receipt notice procedure that can trigger liability and support alternate satisfaction steps if the creditor stays silent. The next step is to send a proof-of-receipt written demand for payoff and release, then track the 30-day response/recording deadline.

Talk to a Real Estate Attorney

If a recorded UCC fixture filing is blocking a North Carolina closing and the lender, assignee, or trustee will not issue a release, an attorney can help identify the correct lienholder, structure a verifiable payoff, and push the right notice process to protect the timeline. Call us today at (919) 341-7055.

Disclaimer: This article provides general information about North Carolina law based on the single question stated above. It is not legal advice for your specific situation and does not create an attorney-client relationship. Laws, procedures, and local practice can change and may vary by county. If you have a deadline, act promptly and speak with a licensed North Carolina attorney.

Category: Real Estate Q&A Series

Author: jpierce

Attorney Jared Pierce is the founder of Pierce Law Group in Raleigh, North Carolina, a firm he established with a dedicated focus on probate administration and estate planning across North Carolina. Born and raised in the Republic of South Africa, Jared moved to Durham with his family in 2001, bringing with him a rich cultural background and a distinctive accent that often serves as a conversation starter.