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Are online Storage auctions legal in California?

Offline Travis

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Are online Storage auctions legal in California?
« on: February 04, 2014, 11:08:09 AM »
Are online Storage auctions legal in California?

Before I begin, I want to make it clear that I'm not an attorney and that you should seek legal counsel before relying on any of this information.

After reviewing California's storage lien law, it's my opinion that you can legally have your lien sale online. Chapter 439 21707 doesn't require the sale to be in person at the facility. However, it does say that the sale must be conducted in a commercially reasonable manner. Now, "commercially reasonable" is a term incapable of a precise definition and will vary depending on the context in which it is used. That being said, I believe that online storage auctions are commercially reasonable since you're making a good faith effort, other California facilities are holding their lien sales online and the unit/units will be exposed to hundreds, possibly even thousands of potential buyers.

Here is a copy of Chapter 439 21707:

CHAPTER 439  21707. After the expiration of the time given in the notice of lien sale,
pursuant to subdivision (b) of Section 21705, or following the failure of a
claimant to pay rent or obtain a court order pursuant to Section 21709, an
advertisement of the sale shall be published once a week for two weeks
consecutively in a newspaper of general circulation published in the county
where the sale is to be held. The advertisement shall include a general
description of the goods, the name of the person on whose account they are
being stored, and the name and location of the storage facility. If there is
no newspaper of general circulation published in the county where the sale
is to be held, the advertisement shall be posted at least 10 days before the
sale in not less than six conspicuous places in the neighborhood of the
proposed sale. The sale shall be conducted in a commercially reasonable
manner.
After deducting the amount of the lien and costs of sale, the owner
shall retain any excess proceeds of the sale on the occupant’s behalf. The
occupant, or any other person having a court order or other judicial process
against the property, may claim the excess proceeds, or a portion thereof
sufficient to satisfy the particular claim, at any time within one year of the
date of sale. Thereafter, the owner shall pay any remaining excess proceeds
to the treasury of the county in which the sale was held.

If you have a question or would like to add something to this, feel free to post a reply.

Offline luke

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Re: Are online Storage auctions legal in California?
« Reply #1 on: February 04, 2014, 02:55:56 PM »
Quote
The advertisement shall include a general description of the goods, the name of the person on whose account they are being stored, and the name and location of the storage facility.

How come every online storage place doesn't put the person name in the advertisement, I see them in the public notices and I have to cross reference.

Offline Travis

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Re: Are online Storage auctions legal in California?
« Reply #2 on: February 04, 2014, 03:37:00 PM »
How come every online storage place doesn't put the person name in the advertisement, I see them in the public notices and I have to cross reference.

Ignorance of the law, mistakes, etc. I look at over 1000 legal notices every month in Texas. Although, it doesn't happen often here, I have seen legal notices that don't list the tenant's name. Heck, I've even seen notices where the facility forgot to include the facility's address, the date & time of the auction. Kind of makes you scratch your head.


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