Can I uncover whether equipment I'm buying is actually paid off or still financed?

Yes, and it's a standard, relatively straightforward check. A Personal Property Security Act search against the seller reveals registered security interests over personal property, including financed or leased equipment, and is the standard way to confirm whether a piece of equipment is actually paid off or still subject to a lender's or lessor's registered interest. If a search shows a registration, that's a strong sign the equipment isn't fully paid off, or at least that the discharge paperwork hasn't been filed yet even if it has actually been paid off.

The nuance worth knowing is that a registration being present doesn't always mean money is still owed — sometimes a paid-off loan's registration simply hasn't been discharged yet, which is a paperwork gap rather than a real debt. Either way, you want written confirmation and, ideally, an actual discharge registered before or at closing, not just the seller's assurance that "it's basically paid off."

Run the search well before closing, and where a registration turns up, get written payout confirmation from the lender or lessor and have the discharge registered as part of your closing conditions. A Treadstone business lawyer can arrange this search and follow through on the discharge.