Can I uncover whether a business has unpaid municipal taxes or utility arrears?

Yes, and this is a standard part of due diligence on any business that operates from or owns real property. A property tax search (or tax certificate) from the relevant municipality confirms whether property taxes are current, and utility providers can generally confirm account status for a specific property, though you'll typically need the seller's cooperation or authorization to get detailed utility information rather than being able to pull it independently.

Whether unpaid amounts follow you depends heavily on structure. Municipal property tax arrears are generally tied to the property itself and can affect a real estate purchase directly if the business owns its premises. In a straightforward asset purchase of a business that only leases its space, utility arrears are more typically a debt of the seller (or even the landlord's account, depending on how utilities are set up) rather than something a buyer automatically assumes — but this should be confirmed rather than assumed, since utility and municipal accounts are sometimes tied to the premises rather than the tenant.

Have this checked as part of your due diligence and require any confirmed arrears to be cleared before or at closing. A Treadstone business lawyer can help confirm what specifically follows the assets versus the property.