When having a legal auction at your storage facility, there are state-specific steps you need to accomplish prior to the sale. This will allow you to stay in compliance with each state’s lien laws. Common questions we answer are, “What are the required steps for my state?” or, “How long does my ad need to run?”
However, a vital detail that people often miss is the information that the state requires in the advertisement of the sale. Not the act of posting an advertisement, but the actual verbiage that your state’s lien law requires to appear in each ad. If that information is left out of your legal ads, you may face the issue of having a wrongful sale, and nobody wants that!
Avoiding this problem
Thanks to the the national Self Storage Association team and your state associations, the conditions for when and where you post your auction advertisements are being updated across many states. This modernization will make lien law obligations easier and more manageable. While that’s extremely helpful, you need to ensure that your auction advertisements include the proper information and verbiage. This is regardless of when, where, or how long it’s public.
“Some states require only basic information such as the time, place, and manner of the sale, while others require operators to list details such as the tenant’s name, unit number, or a description of the property,” says Joe Doherty of the national SSA. “Operators should have a system in place for ensuring that the advertisement contains the necessary information and is published accurately in the location permitted by state law.”
Current example of an auction advertisement
Let’s use Louisiana as an example. A bill recently passed, allowing operators to post their ads online. This was instead of operators having to use (and paying the higher price of) the local newspaper, starting in 2022. That’s a fantastic and helpful improvement for operators across the state!
So, for Louisiana and over 25+ other states that already allow alternatives to posting in the physical newspaper, the ad’s location has changed. But, it is important to note that the ad’s information and duration remain the same.
Louisiana operators will be able to post their ad in places such as StorageAuctions.com’s free “Legal Notice” section, with the following information still required:
- A brief and general description of the movable property reasonably adequate to permit its identification by the lessee
- The address of the storage facility and the number, if any, of the space where the movable property is located and the name of the lessee
- The time, place, and manner of the sale or other disposition
Some states may require this same information, while others may require more or less. Whether you’re one of the lucky ones who can avoid the physical newspaper, or if you still have to publish your ads in hard copy, make sure your advertisement meets all the conditions. In most cases, a simple Facebook post or your auction being online will not suffice. Check your state’s lien laws and make sure your ads are always up to par. By doing this, you can avoid a wrongful sale.
If you have any questions about your auction process, feel free to reach out to the StorageAuctions.com team today. We’re your trusted partner for worry-free auctions. We’d love to help you successfully and legally manage your auctions for improved results.
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