Update - April 25th, 2014 - OnlineStorageAuctions.com, now offers a legal alternative to online only storage auctions which complies with lien laws in all states. Also, the site is completely free to use. There are no buyer or seller fees. Visit the home page for more information.
Over the past few years, a handful of companies which hold
storage auctions online have emerged on the scene. Sealed Online Bids, which has taken a revolutionary idea to the next level. StorageUnitAuctionList just got into online storage auctions and it should be interesting to see which company ends up the leader in this niche. I'm actually a big supporter of online storage auctions because I believe that the concept is the future of storage auctions; however, there seems to be a question as to whether they are legal in my state (Texas) and some other states.
This legal dilemma boils down to whether or not a storage auction can be conducted online or whether it must be held at a physical location. Some state’s self storage lien laws are vague and don’t specify where the sales are to be held; therefore, one could reasonably assume that an online storage auction would be permissible. Texas’s self storage lien laws, along with a handful of other state’s, are not so vague. Chapter 59 of the Texas Property Code, section 59.045 clearly states: A sale under this sub-chapter must be a public sale at the self-service storage facility or a reasonably near public place.
So, are online storage auctions legal?
The answer is – it depends. Each state has it’s own unique storage lien laws. To my knowledge, no state’s storage lien laws specifically state that storage auctions can be held online and vise versa, no state’s storage lien laws specifically state that they can’t. The only way to know for sure is to look at your state’s storage lien laws to see if they specify a location for where the sale is to be held. You can check your states storage lien laws here: storagelaws.com/home.htm
So, what do you think? Should storage lien sales be permitted on the internet? Have you ever used one of these online storage auction companies? Would you ever buy a storage unit online? What is your interpretation of your state's storage lien laws, do they allow it?