This webinar focuses on the lien enforcement procedures for self storage operators in California. It covers lien letters, legal ads, portable storage, motor vehicle sales, and much more.

1. 1
LIEN LAW 101
CALIFORNIA

2. 2PRESENTER
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.
CHELI ROSA

3. 3OVERVIEW
10. Preliminary Lien Notice
11. Email Requirements
12. Notice of Lien
13. Declaration in Opposition
14. Legal Ad
15. The Sale
16. Excess Proceeds
1. Your Rental Agreement
2. California Lawsuits
3. California Statute Sections
4. Definitions
5. Portable Storage
6. Motor Vehicles, Boats, & Towing
7. Default & Late Fees
8. Denying or Restricting Access
9. Perfected Security Interests

4. 4
Your Rental Agreement
MUST HAVE AN
ATTORNEY
INVOLVED

5. 5
NO “QUICKIES”
• Train your staff to fully understand EVERY
provision of your rental agreement
• Be prepared for payroll and admin costs for
rentals that consume large amounts of time
• Explain all of your fees and policies to every
new tenant
• Create addendums to further explain rules and
policies
• Prepare your team for the arguments
associated with your rental agreement and the
lien laws
• Make follow-up training part of your normal
operating procedure

6. 6
LAWSUITS
1. https://express-press-release.net/127/Wrongful-Auction-Lawsuit-Filed-Against-Public-Storage-
93845234.php
2. https://www.insideselfstorage.com/legal/3-california-self-storage-operators-sued-alleged-ada-
violations
3. https://www.sparefoot.com/self-storage/news/7733-judge-sides-public-storage-insurance-class-
action-case/
4. http://lawzilla.com/blog/julie-halliburton-v-stadium-properties-llc/
5. https://law.justia.com/cases/california/court-of-appeal/2018/b284606.html

7. 7
CALIFORNIA STATUTES
Definitions Portable Storage Vehicle & Boat Sales
Preliminary Lien Notice Notice of Lien
Declaration of
Opposition
Perfected Security
Interests
Email Provisions Having the Lien Sale
Late Fees
Legal Ad Requirements
Denying or Restricting
Access

8. 8DEFINITIONS
• Rental Agreement - the statutes
emphasize “in writing” in several
places
• Last Known Address – Address
(mailing or email) must be
provided in your rental
agreement and a change of
address requires a written
change of address from the
tenant
 To Email or Not Email

9. 9
PORTABLE STORAGE
• Transportation fee limitations
• Disclosures in advance
• Forms provided by a certain date (in addition to
the rental agreement)
• Certain recommendations must be made
• If rent is not paid, the standard lien
enforcement applies with special sale
circumstances

10. 10
MOTOR
VEHICLES
• Governed by Section 3701 of the CA Civil Code
• Must Apply to the CA Department of Motor Vehicles
for authority to sell the vehicle (Form REG 656)
• Must do a VIN search through the DMV or a Licensed
Vehicle Verifier
• Must determine the value of the motor vehicle
• There is a specific process for vehicles worth more
than $4,000 and vehicles worth less than $4,000

11. 11BOATS
• Governed by Section 503 of the Harbors and
Navigation Code
• Must Apply to the CA Department of Motor Vehicles
for authority to sell the vehicle (Form REG 656)
• Must do a VIN/HIN search through the DMV or a
Licensed Vehicle Verifier
• Must determine the value of the boat
• There is a specific process for vehicles worth more
than $1,500 and vehicles worth under $1,500

12. 12VEHICLE & BOAT SALE
REQUIREMENTS
Motor vehicle or boat
must be available for
inspection for one hour
prior to the auction to the
public
Motor vehicles and
boats cannot be sold
using sealed bids
The storage operator
must hold the car or boat
for 10 days after the sale
during which time the
tenant or lien holder can
pay and claim the vehicle

13. 13TOWING
• You can tow a motor vehicle after rent is unpaid for 60
days
• You must send your Notice of Lien prior to towing a
motor vehicle
• You have to send Notice via First Class mail with
Certificate of Mailing to your tenant letting them know
where the vehicle was towed and the contact
information of the tow company
• The tow company must be compliant with Section
12520

14. 14
DEFAULT & LATE FEES
Not clearly defined by
the statute. The first
late fee can be
assessed after the
tenant is 10 days late,
per your rental
agreement
Only one late fee may
be assessed per rental
fee
1. $10 if rent is $60 or
less
2. $15 if rent is $100 or
less
3. $20 or 15% of the
monthly fee, if rent is
more than $100

15. 15
DENYING OR RESTRICTING
ACCESS
The statute does not
allow you to deny your
tenant access to their
unit until your Notice of
Sale letter is sent
After a tenant is 14
days late, you can
terminate their access
by sending them a
Preliminary Lien
Notice
It is common to
RESTRICT ACCESS

16. 16PERFECTED SECURITY INTEREST
“Any person who has a
perfected security interest of the
Commercial Code may claim
any personal property subject to
the security interest by paying
the total amount due”

17. 17

18. 18
PRELIMINARY LIEN NOTICE
• Sent Certified Mail, Certificate of Mailing, or
Email
• Alternative addresses
• Must Include the following…
• An itemized statement of fees and the date
they became due
• A statement the right to use the space will
terminate if fees are not paid by a certain date
(Termination Date – Not less than 14 days)
• A statement the occupant may be denied
access if fees are not paid
• Name, street address, and phone number of
who to contact to make payment

19. 19
LET’S TALK ABOUT EMAIL
The rental agreement must state lien notices
can be sent to the occupant and to the
alternate by email
The tenant provides a written
signature on the rental agreement
consenting to receive email notices
Evidence the tenant
logged into a secure
website to access
the forms using a
password
Evidence tenant
logged on to an app
protected by
password
Tenant must
acknowledge
receipt
Tenant
acknowledges
receipt with an
electronic signature

20. 20
NOTICE OF LIEN
• Deny Access
• Send to tenant and alternate listed
• Notice of Lien Must Include:
• A statement the right to use the space is terminated.
• A statement property is subject to a lien & lien will continue if not
paid
• Payment will be sold if not paid by the date provided in the Notice of
Sale form (Not less than 14 days)
• Statement tenant can regain full use if payment is made in full
• Excess proceeds will be kept by the owner/operator and the tenant
may claim them for up to one year
• A blank Declaration in Opposition form
• You cannot cut locks until after your Notice of Lien is sent

21. 21DECLARATION IN OPPOSITION
• You are required to send a blank Declaration in Opposition Form to your tenant with the
Notice of Lien
• Your tenant can oppose your lien sale. They must complete and sign the Declaration in
Opposition Form and return it to you prior to the date listed on your Notice of Sale Form
• Form must be sent by Certified Mail
• If they oppose the sale, you must file in court to get a judgment to proceed with your lien
sale
• Small Claims Court - $5,000 for one filing or two for $2,500
• Other Court of Competent Jurisdiction if higher
• Tenant has 10-15 days to respond
• If the judge rules in your favor, you can advertise the sale

22. 22
LEGAL AD
• Once the date on your Notice of Lien form expires (or you
receive a court order), you can run your legal ad
• Once a week for two consecutive weeks in a Newspaper
of General Circulation
• Ad must be run in a paper in the Public Notice District
where the facility is located
• Legal ad must contain the following:
• A general description of goods
• Tenant name
• Name and location of the self-storage facility

23. 23
THE SALE

24. 24
EXCESS
PROCEEDS
• If a unit sells for more than a tenant owes, the proceeds of the sale
belong to the tenant
• You must send them a DEMAND AND RELEASE letter via your
statutorily required mailing form
• The tenant has one year to claim the excess proceeds

25. 25
DO YOU WANT TO
REDUCE YOUR
LIABILITY?
Join our Auctioneers in
our new Auction Review
Service Program!

26. 26

27. 27
QUESTIONS

28. 28
Cheli RosaANY
NAMEcrosa@opentechalliance.com
(404) 643-4528
www.StorageTreasures.com
West Region
Gabriella Rupisan
grupisan@opentechalliance.com
(602) 324-8690
East Region
Steve Santee
ssantee@opentechalliance.com
(602) 324-8661
Central Region
Jorge Becerra
jbecerra@opentechalliance.com
(602) 324-8655
Next Webinar:
April 25, 2019 at 3:00 PM EST
Mountain Region
Brandon Davis
bdavis@opentechalliance.com
(480) 499-8266