Storage Liens

AUTHORITY:

Tenn. Code Ann. § 66-31-105

DESCRIPTION:

A “storage lien” can take place when an occupant fails to pay the rent for a storage space or unit when it is due.

• The owner may, without notice, deny the occupant access to the personal property in the self-storage unit. The owner, not less than five (5) days after the date the rent is due, may enter and remove the personal property from the leased space to other suitable storage space pending its sale or other disposition;
• The owner shall notify the occupant of the owner's intent to enforce the owner's lien by written notice delivered by hand delivery, by verified mail, or by electronic mail to the occupant's last known address; OR
• In the case of long-term default, which is a continuous fifteen (15) days, the owner may enforce the owner's lien in accordance with the following procedures:
  • The occupant shall be notified in writing;
    • The notice shall be delivered by hand delivery, by verified mail, or by electronic mail to the occupant's last known address;
  • The notice shall include:
    • An itemized statement of the owner's claim showing the sum due at the time of the notice and the date when the sum became due;
    • A demand for payment of the sum due within a specified time not less than thirty (30) days after the date of the notice and a statement of the approximate additional expenses which may be incurred between the date of the notice and the date of the sale;
    • A statement that the contents of the occupant's leased space are subject to the owner's lien;
    • If the owner elects to deny the occupant access to the leased space or elects to enter and/or remove the occupant's personal property from the leased space to other suitable storage space, a statement so advising the occupant shall be included in the notice;
    • The name, street address and telephone number of the owner or designated agent whom the occupant may contact to respond to the notice; and
    • A conspicuous statement that unless the claim is paid within the time stated, the personal property will be advertised for sale or will be otherwise disposed of at a specified time and place, not sooner than sixty (60) days after default
• If the personal property is advertised for sale and the sale is not consummated, the owner shall give written notice to the occupant of other disposition of the personal property
• Any sale or other disposition of the personal property must be held at the self-service storage facility, online, or at the nearest suitable place to where the personal property is held or stored.
• After expiration of the time stated in the notice and if the personal property has not otherwise been disposed, the owner shall advertise the sale of the personal property in a commercially reasonable manner. The manner of advertisement is deemed commercially reasonable if not less than three (3) potential bidders participate in the sale at the time and place advertised. The advertisement of sale may include, but not be limited to, the publishing one (1) time before the date of the sale of the personal property in a newspaper of general circulation that serves the area where the self-storage facility is located.
  
  • An advertisement must include:
    • A statement that the contents of the occupant's leased space shall be sold to satisfy the owner's lien
    • The address of the self-service storage facility and the number or other description, if any, of the space where the personal property is located and the name of the occupant; and
    • The time, place, and manner of the sale
• Before any sale or other disposition of personal property pursuant to this section, the occupant may pay the amount necessary to satisfy the owner's lien and the reasonable expenses incurred under this section and thereby redeem the personal property. Upon the payment and satisfaction of the amount necessary to satisfy the lien, the owner shall return the personal property and thereafter the owner shall have no liability to any person with respect to such personal property
• The owner may buy at any sale of personal property to enforce the owner's lien
• A purchaser in good faith of the personal property sold to satisfy the owner's lien takes the property free of any rights of persons against whom the lien was valid, despite noncompliance by the owner with the requirements of this section
• In the event of a sale under this section, the owner may satisfy the owner's lien and the expenses of such sale from the proceeds of the sale but shall hold the balance, if any, for delivery on demand to the occupant. If the occupant does not claim the balance of the proceeds within one (1) year of the date of the sale, such balance shall be deemed to be abandoned, and the owner shall pay such balance to the state treasurer who shall receive, hold and dispose of same in accordance with the Uniform Unclaimed Property Act.
• If the property upon which the lien is claimed is a vehicle and rent and other charged related to the property remain unpaid for sixty (60) days after the maturity of the obligation to pay rent, the facility owner may utilize either of the following options:
  • The facility owner may have the vehicle towed. The owner shall not be liable for the vehicle or any damages to the vehicle once the owner takes possession of the property; or
  • The facility owner shall contact the Vehicle Services Division by submitting a Vehicle Information Request to determine if there is a lienholder and the name and address of the owner of the vehicle as shown in the records. If the vehicle is a motor vehicle, then the facility owner may also contact the county clerk for the purposes of determining the existence and identity of any lien holder and the name and address of the owner of the motor vehicle as shown in the county clerk's records. Within ten (10) days of receipt of the information concerning any lien holder and the owner of the motor vehicle, as shown in the division's or county clerk's records, the facility owner shall send a written notice to any lien holder and to the motor vehicle owner, if the motor vehicle owner is not the occupant, by verified mail, stating that:
    • The vehicle is being held by the facility owner
    • A storage lien has been attached to the vehicle; and
    • Payment shall be made within thirty (30) days after notification to satisfy the lien. The vehicle owner or lienholder may pay the balance owed and take possession of the vehicle. If the owner of lienholder does not satisfy the storage lien, the facility owner may sell the vehicle in any manner, including but not limited to, public auction.

REQUIREMENTS:

• Completed Form: Certificate of Sales Under Special Conditions
• Vehicle Information Request form received from the Department of Revenue
• Certified mail receipts
• A copy of the newspaper ad or public notice announcing the auction.
• Itemized statement of storage and/or towing fees owed to the applicant
• Odometer Disclosure Statement, if applicable

RELATED TOPICS:

GARAGEKEEPERS LIEN

ABANDONED VEHICLES