Download - Avoiding Lien Sale Disasters
Avoiding Lien Sale Avoiding Lien Sale DisastersDisasters
Cheli Rosa – Legacy Auction [email protected]
1-800-836-3537
Who Knew???Who Knew???How long has the SSA be in operation?
40 Years
When and where was the first self storage facility in the U.S.?
1958, Ft. Lauderdale
How many self storage facilities are there in the U.S.?
48,500
How much did the self storage industry pay in local property taxes in 2013?
$3.25 Billion
How many active military personnel rented storage units in 2013?
1.5 Million
What is your main What is your main intention when intention when
auctioning off units?auctioning off units?
Your Tenant is Late, Now What?Your Tenant is Late, Now What?
Deny access and over lock unit after 5 days.
Send late notices Impose late fees Send pre-lien letters
Preparing for the Lien LetterPreparing for the Lien Letter“ …in the event of default, the owner
must give notice to persons who hold perfected security interests under the Uniform Commercial Code in which the tenant is named as a debtor.” - FL Self Storage Facility Act, 83.805
UCC Filings
Florida UCC Searches: www.floridaucc.com
Federal Liens: http://www.sunbiz.org/lienlis.html
Judgement Filings: http://www.sunbiz.org/jlilist.html
Tenants in BankruptcyTenants in Bankruptcy
You cannot sell a unit of a tenant You cannot sell a unit of a tenant that is in bankruptcy. that is in bankruptcy.
Active Military TenantsActive Military Tenants Free Search
www.dmdc.osd.mil/appj/scra/scraHome.do
Military Language RequiredMilitary Language Required
“A rental agreement of a rental agreement application must contain a provision disclosing whether the applicant is a member of the uniformed services as that term is defined in 10 U.S.C. s. 101 (a)(5)”
The Lien LetterThe Lien Letter Certify to last known address/addresses Include facility name, address & phone number. An itemized statement showing the sum due a
the time of the letter. The same description, or a reasonably similar
description of the personal property as provided in the rental agreement.
A demand for payment, not less than 14 days after the delivery of the notice.
A conspicuous statement of the intent to dispose of the property.
Time, date, and place of sale.
Sending the Lien LetterSending the Lien Letter Letter is considered delivered when dropped
at the Post Office properly addressed and postage paid.
Option 1 – First Class Mail with a Certificate of Mailing
Option 2 – Email Must receive a response, return receipt, or
confirmation of delivery.
When Can You Run When Can You Run Your 1Your 1stst AD? AD?
After the demand date in your letter has expired
AdvertisementAdvertisement
Must run in a paper of general circulation
Must run 2 consecutive weeks Must include facility name and
address Must include tenant name and
description of unit contents from the rental agreement and line letter.
Time, place, and manner of sale.
After the SaleAfter the Sale
What if the proceeds do not cover the What if the proceeds do not cover the debt owed?debt owed?
What if the proceeds exceed the debt What if the proceeds exceed the debt owed? owed?
Personal EffectsPersonal Effects Keeping tenant recordsKeeping tenant records
Selling VehiclesSelling Vehicles at Auction at Auction Florida Uniform Commercial Code Section 679.504 (3) 7
“A purchaser in good faith of the personal property sold to satisfy a lien takes the property free of any claims.”
You must verify the owner and any lien holders of a motor vehicle BEFORE you prepare your lien letters.
When selling a vehicle, the following parties must receive a lien letter: tenant, any other owners or registrants, and any known lien holders.
When selling a vehicle, the description on your lien letter must include the Year, Make, Model, and VIN number.
When selling a vehicle, your advertisement must include the names of all interested parties and the Year, Make, Model and VIN number.
DMV Requirements to Title DMV Requirements to Title Vehicles Sold at Storage AuctionsVehicles Sold at Storage Auctions
All letters involving vehicle sales must be sent certified mail!
You will need to provide the auction buyer of the vehicle with the following items: A copy of the lien letter The original or certified copy of the returned, unopened
letters A copy of the rental agreement A copy of AD Affidavit or a copy of both Ads A completed Notice of Sale Form (HSMV 82050)
DMV TL-28 – www.3.flhsmv.gov/dmv/Proc/TL/TL-28.PDF
