This presentation looks at the Texas statutes regarding self-storage foreclosures. We will share tips, tricks, links, and facts to help you if you are a Texas Self Storage Facility Owner.

1. 9/26/2019
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LIEN LAW 101
Texas
CHELI ROSA
PRESENTER
StorageTreasures, Managed by OpenTech Alliance, Inc.
Strategic Account Manager & Auctioneer
e. crosa@opentechalliance.com c. (404) 643-4528
Auction Licenses: FL - AU4247, GA – AU003807, TX – 17062
*** Contact us for a full list of all team member’s auctioneer license numbers.

2. 9/26/2019
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Webinar Overview
AGENDA
1. Your Rental Agreement
2. Your Lien
3. “Seizing” the Unit
4. The Notice of Claim
5. Mailing Methods
6. Change of Address
7. Legal Ad
8. The Sale
9. After the Sale
10.Active Military Tenants
11.Bankruptcy
12.Boats & Vehicles
Your Rental Agreement
LIEN LAW 101
You do not have a lien and cannot
foreclose if:
• the rental agreement is not signed
• the rental agreement is written but
does not contain the necessary
contractual lien.
• the contractual lien is not underlined
or in bold print
• the rental agreement it not signed
If any of these conditions exist, your only
remedy is to evict your tenant
Source: https://www.txssa.org/web/Online

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Your Lien
LIEN LAW 101
More Than Rent
Your lien is for all money owed
to you, including rent,
damages, and all other sums if
listed in the rental agreement
Entire Contents
Your lien is on “all the
property in the unit.”It does
not matter if the property is
owned by the tenant.
Superior Lien
Your lien is superior to any
other liens that may have been
filed except for boats and
motor vehicles
Seizing the Unit
LIEN LAW 101
1. TSSA Lease – remove tenant’s lock and place your own.
• Take pictures or video of the unit contents
2. Non-TSSA Lease – “Overlock” the unit and follow-up with a
Notice of Claim stating the unit contents “have been seized.”
• The Notice of Claim begins the foreclosure process.
3. Seizure should be defined in your rental agreement.
4. Outdoor spaces should be seized with:
• Locks and chains or wheel boots
• Deny gate access and send a Notice of Claim

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The Notice of Claim
LIEN LAW 101
An itemized
account of the
claim
The name,
address, and
phone # of the
storage facility
Statement:
The contents of
the have been
seized per a
contractual lien
Statement:
Provide tenant 14
days to pay or the
property will be
sold
Statement:
The tenant must
notify the owner
of their military
status (bold or
underlined)
Mailing Methods
NOTICE OF CLAIM
1. Any form of verified mail or mail that proves
evidence of mailing
• Considered delivered when deposited at the
post office
2. Email - Only if the tenant provided the email
address in a signed rental agreement.
• Considered delivered when sent

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Legal Change of Address
NOTICE OF CLAIM
• All notices must be sent to the “tenant’s last
known email or postal address stated in the
rental agreement or by written notice provided
by the tenant after the rental agreement is
signed."
• Signed Change of Address form
• A delivered envelope containing a written
statement of address change
• Must be dated to determine “last known”
Legal Advertisement
LIEN LAW 101
• Must be advertised two consecutive weeks in a
newspaper of general circulation, in your
county
• Cannot run the 1st ad until 15 days AFTER the
Notice of Claim is sent
• Must contain:
• A general description of property
• Statement the sale is due to lien
• The tenant’s name
• Address of the facility
• Time place and manner of sale (website,if using
online auctions)

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The Sale
LIEN LAW 101
• Online
• In-person
• Facility owner CAN bid
• You can sell the contents in separate lots
• Provide a Bill of Sale (receipt)
• You must collect sales tax, unless:
• Sales tax resale certificate
• Tax exempt certificate
• Boats and motor vehicles
After the Sale
LIEN LAW 101
• If there are excess proceeds, send tenant a notice of the excess proceeds.
• Tenant has two years to claim the excess proceeds
• Keep all records of foreclosure sales for 4 years
• Copy of all correspondence
• The Notice of Claim
• Evidence of mailing
• Copy of Newspaper Ads
• Copy of the Notice of Public Sale
• Copy of the Bill of Sale (receipt)
• Keep records of vehicle foreclosures for 5 years

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Active Military Tenants
LIEN LAW 101
(1-a) "Military service" means:
(A) military service as defined by Section 101,
Servicemembers Civil Relief Act (50 U.S.C. App.
Section 511); and
(B) active duty service for a period of more than 30
consecutive days as a member of the Texas State
Guard or Texas National Guard under the call of the
governor.
• Ask the tenant in the rental agreement if they
are active military
• You can require written proof of tenant’s
military service
Active Military Searches
ACTIVE MILITARY TENANTS
https://scra-w.dmdc.osd.mil/scra/#/homeFree Search
https://www.servicememberscivilreliefact
.com/about-us/military-status-verification/
Paid Search

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Bankruptcy
LIEN LAW 101
• All bankruptcy filings result in a “Automatic Stay” on the
property in question.
• No collection efforts can take place during the
automatic stay
• Verify documentation
• Ask the tenant for a case number
• Contact the bankruptcy court for verification
• File a Proof of Claim with the court as a “secured” claim
• “Post-Petition Debt”
• Chapter 7 – No Deals Allowed!
• www.PACER.com
Boats & Motor Vehicles
LIEN LAW 101
www.txdmv.gov/forms
https://tpwd.texas.gov/fishboat/boat/forms
1. Affidavit of Statutory Lien Foreclosure
Sale by SSF
2. Ownership/Lien Holder Information
Printout
1. Request for Texas Motor Vehicle
Information
2. Application and Affidavit form VTR-265-
SSF

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Gabriella
West
602.324.8690
gsimpson@
opentechalliance.com
Brandon
Mountain
480.499.8266
bdavis@
opentechalliance.com
Jorge
Central
602.324.8655
jbecerra@
opentechalliance.com
Steve
East
602.324.8661
ssantee@
opentechalliance.com
crosa@opentechalliance.com
(404) 643-4528
www.StorageTreasures.com
https://www.slideshare.net/chelirosa
Next Webinar: “Bankruptcy, Active Military, and Deceased Tenants
October 30, 2019 at 3:00 Eastern Time
https://attendee.gotowebinar.com/register/2375760255888120065
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