CHAPTER 507 LIENS
Part III. Self-Service Storage Facilities
Definitions.
Whenever used in this part, unless the context otherwise
requires:
"Last known address" means the address provided
by the occupant in the latest rental agreement, or the
address provided by the occupant in a subsequent written
notice of a change of address.
"Occupant" means a person, or the person's
sublessee, successor, or assign, or who is entitled to
the use of designated or individual storage space at a
self-service storage facility under a rental agreement,
to the exclusion of others.
"Owner" means the owner, operator, lessor, or
sublessor of a self-service storage facility, an agent
thereof, or any other person authorized to manage the
facility, or to receive rent from an occupant under a
rental agreement, and no real estate license is required.
"Personal property" means movable property not
affixed to land, and includes, but is not limited to,
goods, merchandise, furniture, household items, motor
vehicles, and boats.
"Rental agreement" means any written agreement
or lease which establishes or modifies the terms,
conditions, rules, or any other provision concerning the
use and occupancy of a self-service storage facility.
"Self-service storage facility" means any real
property designed and used for the purpose of renting or
leasing designated or individual storage space to
occupants who are to have access to the space for the
purpose of storing and removing personal property, but
does not include a garage or other storage area in a
private residence. No occupant shall use a self-service
storage facility for residential purposes. A self-service
storage facility is not a warehouse, nor a public
utility. If an owner issues any warehouse receipt, bill
of lading, or other document of title for the personal
property stored, the owner and the occupant are subject
to chapter 490, and this part does not apply.
Chap. 507, Part III, §507-61
Owner's lien.
The owner of a self-service storage facility and the
owner's heirs, executors, administrators, successors, and
assigns have a lien upon all personal property located at
a self-service storage facility for rent, labor, or other
charges, present or future, incurred pursuant to the
rental agreement, and for expenses necessary for the
preservation, sale, or disposition of personal property
subject to the provisions of this part. The lien may be
enforced consistent with this part. However, any lien on
a motor vehicle or boat which has attached and is set
forth in the documents of title to the motor vehicle or
boat shall have priority over any lien created pursuant
to this part.
Chap. 507, Part III, §507-62
Rent due; notice of default and lien.
When any part of the rent or other charges due from an
occupant remain unpaid for fifteen consecutive days, an
owner may deny the right of access to the occupant to the
storage space at a self-service storage facility;
provided that notice is sent to the occupant's last known
address, postage prepaid, containing all of the
following:
(1) A statement of the owner's claim showing the sums due
at the time of the notice and the date when the sums
became due.
(2) A statement that the occupant is in default of the
rental agreement.
(3) A statement that the occupant's right to use the
storage space will be denied unless and until all sums
due are paid by the occupant.
(4) A notice that the occupant has been denied access to
the storage space and that an owner's lien, as provided
for in section 507-62, may be imposed if all sums due are
not paid within fifteen days of the notice.
(5) The name, street address, and telephone number of the
owner, or a designated agent, whom the occupant may
contact to respond to the notice.
Chap. 507, Part III, §507-63
Notice of lien.
If a notice has been sent, as required by section 507-63,
and the total sum due has not been paid as specified in
the notice, the owner may deny an occupant access to the
space, enter the space, and remove any property found in
the space to a place of safe keeping; provided that the
owner shall send to the occupant, addressed to the
occupant's last known address, postage prepaid, a notice
of lien which shall state all of the following:
(1) That the occupant's right to use the storage space
has terminated and that the occupant no longer has access
to the stored property.
(2) That the stored property is subject to a lien, and
the amount of the lien.
(3) That the owner will seize and take possession of the
property to satisfy the lien after a specified date which
is not less than fifteen days from the date of mailing
the notice unless the amount of the lien is paid.
Chap. 507, Part III, §507-64
Final demand and notice of sale.
If both notices have been sent, as required by sections
507-63 and 507-64, and the total sum due has not been
paid as specified in the two prior notices, the owner may
prepare for the sale of the occupant's property. The
owner shall then send to the occupant, addressed to the
occupant's last known address, postage prepaid:
(1) A notice of final demand and sale which shall state
all of the following:
(A) That the sums due for rent and charges demanded have
not been paid.
(B) That the occupant's right to use the designated
storage space has been terminated.
(C) That the occupant no longer has access to the stored
property.
(D) That the stored property is subject to a lien and the
amount of the lien.
(E) That the property will be sold to satisfy the lien
after a specified date which is not less than thirty days
from the date of mailing the notice unless prior to the
specified date, the lien is paid in full.
(F) That any excess proceeds of the sale over the lien
amount of costs of sale will be retained by the owner and
may be reclaimed by the occupant, or claimed by another
person, at any time for a period of one year from the
sale and that thereafter the proceeds will go to the
State under chapter 523A.
(G) That if the proceeds of sale do not fully cover the
amount of lien and costs, the occupant will be held
liable for any deficiency.
(2) An itemized statement of the owner's claim showing
all sums due at the time of the notice and the date when
sums became due.
Chap. 507, Part III, §507-65
Method of sale.
(a) Fifteen days after sending the final demand and
notice of sale, pursuant to section 507-65(1), an
advertisement of the sale shall be published once a week
for two weeks consecutively in a newspaper of general
circulation published in the judicial district 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, the total sums
due, and the name and location of the storage facility.
(b) The sale shall be conducted in a commercially
reasonable manner; and, after deducting the amount of the
lien and costs, 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 State as provided in
chapter 523A.
Chap. 507, Part III, §507-66
Security interests, rights.
Any person who has a perfected security interest under
chapter 490 may claim any personal property subject to
the security interest and subject to a lien pursuant to
this part by paying the total amount due, as specified in
the final demand and notice of sale. Upon payment of the
total amount due, the owner shall deliver possession of
the particular property subject to the security interest
to the person who paid the total amount due. The owner
shall not be liable to any person for action taken
pursuant to this section if the owner has fully complied
with the requirements of sections 507-63, 507-64, and
507-65.
Chap. 507, Part III, §507-67
Payment before sale.
Any person claiming a right to the goods must pay the
amount necessary to satisfy the lien and the reasonable
expenses incurred for particular actions taken pursuant
to this part. In that event, the goods shall not be sold,
but shall be retained by the owner subject to the terms
of this part pending a court order directing disposition
of the property.
Chap. 507, Part III, §507-68
Good faith purchaser.
A purchaser in good faith of goods sold to enforce a lien
in favor of the owner on goods stored at a self-service
storage facility takes the goods free of any rights of
persons against whom the lien was claimed, despite
noncompliance by the owner of the storage facility with
the requirements of this part.
Chap. 507, Part III, §507-69
Self-storage contracts.
(a) Each contract for the rental or lease of individual
storage space in a self-service storage facility shall be
in writing and shall contain, in addition to the
provisions otherwise required or permitted by law to be
included, a statement that the occupant's property will
be subject to a claim of lien and may be sold to satisfy
the lien if the rent or other charges due remain unpaid
for fifteen consecutive days and that such actions are
authorized by this part.
(b) This part shall not apply, and the lien authorized by
this part shall not attach, unless the rental agreement
or supporting documentation requests, and provides space
for, the occupant to give the name and address of another
person to whom notices required to be given under this
part may be sent. If both an address and an alternative
address are provided by the occupant, notices pursuant to
sections 507-63 or 507-64 shall be sent to both
addresses. If both addresses are provided by the
occupant, the owner shall send the final demand and
notice of sale, pursuant to section 507-65, to both
addresses by certified mail, postage prepaid.
Failure of an occupant to provide an alternative address
shall not affect an owner's remedies under this part or
under any other provision of law.
Chap. 507, Part III, §507-70
Other rights.
Nothing in this part shall be construed to impair or
affect the right of the parties to create additional
rights, duties, and obligations in and by virtue of the
rental agreement. The rights provided by this part shall
be in addition to all other rights provided by law to a
creditor against the creditor's debtor.
Chap. 507, Part III, §507-71
Applicability.
This part shall only apply to rental agreements entered
into, or extended, or renewed after June 4, 1984.
Chap. 507, Part III, §507-72
DISCLAIMER: Please Note: With respect
to the documents available from this site or server,
neither myself nor any employees, makes any warranty,
express or implied, including the warranties of
merchantability and fitness for a particular purpose, or
assumes any legal liability or responsibility for the
accuracy, completeness, or usefulness of any information,
apparatus, product, or process disclosed, or represents
that its use would not infringe privately-owned rights.
This information is provided for informational purposes
only. Please seek legal counsel for help on
interpretation of individual statutes.
Contact Ron VanVarden
Member
Self Storage Association
California Self Storage Association (Central Valley Territory Leader)