New lien laws in effect, January 2015

Operators in Massachusetts, Pennsylvania, and California all look forward to new updates to their lien law statutes going into effect in January, 2015.

These revisions, through the tireless efforts of the Massachusetts, Pennsylvania, and California Self Storage Associations along with the National SSA have resulted in many positive changes for the industry in these states. These changes benefit both the Operator and the Occupant because many of these changes represent a substantial savings to the Operator which savings can be passed along to the defaulting Occupants. In Massachusetts and Pennsylvania you will be able to serve your lien notices without the necessity of certified mail. Whether you choose verified first class mail or email depends on greatly on many factors. Both state statues contain an opt in requirement for email default notices both of these states will also now allow for the towing of a vehicle in lieu of a sale. This is an absolutely terrific change given how difficult, if not impossible, it was to obtain title and properly sell a vehicle in these states. California also added the ability to tow a vehicle to its Statute although in unfortunately, email notices did not survive as part of the proposed bill that became law in California.

Pennsylvania changes also clarify the ability to allow for the sale of tenant insurance at your facility through a licensure program. Both Pennsylvania and Massachusetts contain other important changes, for example, in Massachusetts there is now a statutory “reasonable late fee” and also changes where the advertisement can be run.

If you are an Operator in California, Massachusetts or Pennsylvania please make sure that you review your Rental Agreements, particularly any documents relating to vehicle storage late fees, as well as your default protocols and notices before proceeding with a lien sale or vehicle disposal in 2015.

If you are a client of this office and wish to speak with me about these changes please feel free to contact me directly or through my assistant Christi 513-698-9343. If you are not a client of this office and wish to talk with us about these changes we are happy to speak with you but recommend you set an appointment with the office when you are ready.

Happy New Year

Written By

Jeffrey J. Greenberger is a Partner with the law firm of Greenberger & Brewer, LLP, in Cincinnati, Ohio and is licensed to practice in the states of Ohio and Kentucky. Mr. Greenberger’s practice focuses primarily on representing the owners and operators of commercial real estate, including self-storage owners and operators.

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