Frequently Asked Questions - Government Liens
Generally, government liens are liens placed on property on behalf of the federal or state government or liens imposed by courts.
Examples include various kinds of tax liens, e.g., income tax liens and property tax liens, and restitution liens. (See: “What is a “restitution lien?”)
As a general rule, if you have contents in a defaulted unit that are subject to a government lien, you cannot sell the contents. Your best option is to try to get the tenant to take his property and go away so you can get the unit back into production.
The exception to this is a restitution lien.
Examples include various kinds of tax liens, e.g., income tax liens and property tax liens, and restitution liens. (See: “What is a “restitution lien?”)
As a general rule, if you have contents in a defaulted unit that are subject to a government lien, you cannot sell the contents. Your best option is to try to get the tenant to take his property and go away so you can get the unit back into production.
The exception to this is a restitution lien.
A restitution lien is lien placed by a criminal court against the property of a convicted criminal. It is a means of trying to recover some money – restitution – for the benefit of the victim of the crime.
Restitution liens are becoming increasingly popular among the states since they cost the state nothing and may do some good for crime victims.
For storage operators, such liens arise most commonly on motor vehicles, but could apply to any kind of property.
Restitution liens are becoming increasingly popular among the states since they cost the state nothing and may do some good for crime victims.
For storage operators, such liens arise most commonly on motor vehicles, but could apply to any kind of property.
Yes.
There are some basic requirements (see: “Must I notify restitution lienholders prior to sale?” and “What is to be done with proceeds of sale of property subject to a restitution lien?”)
Normally property subject to a restitution lien may not be sold, but there is an exception in the law specifically for self-service storage, A.R.S. §13-806(J).
There are some basic requirements (see: “Must I notify restitution lienholders prior to sale?” and “What is to be done with proceeds of sale of property subject to a restitution lien?”)
Normally property subject to a restitution lien may not be sold, but there is an exception in the law specifically for self-service storage, A.R.S. §13-806(J).
The storage operator is entitled to keep the reasonable costs of sale (as distinct from the actual costs of sale, in case your costs are out of line). The remaining proceeds of sale are to be paid to the restitution lienholder.
Yes.
There is a general requirement prior to sale that lienholders be notified. The rule applies equally to restitution lienholders.
Most lienholder notices include information about the coming sale, giving the lienholder an opportunity to act prior to sale. Although the law does not require it, the notice to a restitution lienholder ought to include two additional pieces of information:
• That the proceeds of sale, less your reasonable costs of sale will be paid to them as restitution lienholder.
• If the lienholder prefers, they can pay the amount of the storage lien, collect the property and sell it themselves, if they feel that they could sell the property for more money, for example (see: “Can a restitution lienholder take the liened property prior to sale?”).
There is a general requirement prior to sale that lienholders be notified. The rule applies equally to restitution lienholders.
Most lienholder notices include information about the coming sale, giving the lienholder an opportunity to act prior to sale. Although the law does not require it, the notice to a restitution lienholder ought to include two additional pieces of information:
• That the proceeds of sale, less your reasonable costs of sale will be paid to them as restitution lienholder.
• If the lienholder prefers, they can pay the amount of the storage lien, collect the property and sell it themselves, if they feel that they could sell the property for more money, for example (see: “Can a restitution lienholder take the liened property prior to sale?”).
Yes.
But the restitution lienholder is required by law to pay the self-storage the amount of its outstanding storage lien in full as a condition of taking the property. (A.R.S. §33-1704(E))
But the restitution lienholder is required by law to pay the self-storage the amount of its outstanding storage lien in full as a condition of taking the property. (A.R.S. §33-1704(E))
No.
A buyer at a self-storage auction takes title free and clear of all liens including restitution liens. (A.R.S. §13-806(J))
A buyer at a self-storage auction takes title free and clear of all liens including restitution liens. (A.R.S. §13-806(J))