Frequently Asked Questions - Motor Vehicles
There are essentially 3 steps:
1. Identify the owner.
Bring a description of the vehicle: make, model, year, color and VIN(vehicle ID number) to an MVD office, where you obtain the vehicle’s Motor Vehicle Record (MVR). That will show the name and address of the last registered owner(s) and any lien holders.
2. Give your notices.
These are the standard pre-auction verified and unverified mailings and publications. There are only two differences: a) Your notices and publications must include a description of the vehicle. b) If the MVR disclosed owner information that differs in any way from your tenant infor-mation, e.g. a different or additional owner, a different street address, etc., duplicate all your standard notices to the additional parties/addresses.
3. Prepare post-auction paperwork.
Your auction buyer needs some evidence of purchase to bring to MVD to record title. A special form, DECLARATION OF SALE, is available from AZSA for the purpose. Complete one following the sale. Give the original to the buyer and keep the copy for your records.
More complete instructions are available in your AZSA Resource Book and on-line at the AZSA website.
No.
At one time that was the law. That portion of the law was eliminated in 2006.
There is one situation in which requesting an inspection is appropriate: when you cannot find a vehicle ID number (VIN) on the vehicle. State inspectors know the hidden spots where numbers may be found. If even they cannot find a number, then they will create and assign a number to the vehicle. Use that number then to go forward with your process. NOTE: In this situation, be sure to request a “Level II” inspection, which provides for a higher degree of examination.
At one time that was the law. That portion of the law was eliminated in 2006.
There is one situation in which requesting an inspection is appropriate: when you cannot find a vehicle ID number (VIN) on the vehicle. State inspectors know the hidden spots where numbers may be found. If even they cannot find a number, then they will create and assign a number to the vehicle. Use that number then to go forward with your process. NOTE: In this situation, be sure to request a “Level II” inspection, which provides for a higher degree of examination.
Absolutely. Retail sales tax should be charged when selling anything from your facility, whether it’s a padlock or auctioned property. There is even a place on the Declaration of Sale form to record the amount of tax charged and collected.
You have actually answered your own question. If there is enough vehicle remaining together that you have to ask the question, then the safe process to follow is treat it as if it is normal vehicle.
In fairness to your buyers, you might want to add to the description of the vehicle appearing in the publications of your auction some notice that the vehicle is not whole, e.g., “(parts removed)” or something similar.
On the other hand, if your perception of what you are looking at is “auto parts,” i.e. not assembled enough to raise the question, then you likely do not have a vehicle, only parts.
In fairness to your buyers, you might want to add to the description of the vehicle appearing in the publications of your auction some notice that the vehicle is not whole, e.g., “(parts removed)” or something similar.
On the other hand, if your perception of what you are looking at is “auto parts,” i.e. not assembled enough to raise the question, then you likely do not have a vehicle, only parts.
Yes.
Actually, it would be a good idea to first check the Arizona motor vehicle records, in case the owner had registered the vehicle here but never put Arizona plates on. If that produces no information, then apply to the other state.
There is a form letter in your AZSA Resource Book for this purpose that you can photocopy and use to write to the other state. However, before sending it, it is a good idea to go on-line and search for that state’s motor vehicle department website. See if they have a form you can download for use in requesting vehicle title information. Be sure to include any required fee charged by that state.
Be prepared to receive either a refusal to provide information or silence from the other state. Anti-stalker laws in many states limit who may have access to vehicle records, and self-storage operators are generally not on such lists. In Arizona, self-storage operators are specifically permitted to have access to motor vehicle title records. [A.R.S. §28-455(C)(14)(e)]
Actually, it would be a good idea to first check the Arizona motor vehicle records, in case the owner had registered the vehicle here but never put Arizona plates on. If that produces no information, then apply to the other state.
There is a form letter in your AZSA Resource Book for this purpose that you can photocopy and use to write to the other state. However, before sending it, it is a good idea to go on-line and search for that state’s motor vehicle department website. See if they have a form you can download for use in requesting vehicle title information. Be sure to include any required fee charged by that state.
Be prepared to receive either a refusal to provide information or silence from the other state. Anti-stalker laws in many states limit who may have access to vehicle records, and self-storage operators are generally not on such lists. In Arizona, self-storage operators are specifically permitted to have access to motor vehicle title records. [A.R.S. §28-455(C)(14)(e)]
First, examine the vehicle for any evidence of registration in another state: license plate, stickers, glove box contents, etc. If you find such evidence then check with that state.
If no evidence is found of registration elsewhere, it not necessary to write to all 49 other states seeking possible registrations. You have tried to obtain ownership information and it is unavailable.
Remember, had you been successful in obtaining ownership information from MVD in Arizona or from another state, all that would have resulted would have been other names/addresses to which to send your certified and uncertified letters. The law specifically provides that you do not have to send those additional notices “if ownership information for a vehicle is unavailable.” [A.R.S. §-33-1704(B)(3)(c)].
Thus, all you are required to do is send the two, customary auction letters to your tenant at his/her last known address. (Remember to include a description of the vehicle in the letter.)
If no evidence is found of registration elsewhere, it not necessary to write to all 49 other states seeking possible registrations. You have tried to obtain ownership information and it is unavailable.
Remember, had you been successful in obtaining ownership information from MVD in Arizona or from another state, all that would have resulted would have been other names/addresses to which to send your certified and uncertified letters. The law specifically provides that you do not have to send those additional notices “if ownership information for a vehicle is unavailable.” [A.R.S. §-33-1704(B)(3)(c)].
Thus, all you are required to do is send the two, customary auction letters to your tenant at his/her last known address. (Remember to include a description of the vehicle in the letter.)
Yes. We auction units all the time without being certain that the tenant is the owner of every item in the unit. It just seems more technical when a vehicle is involved.
Your storage lien for unpaid rent is on “all personal property stored within each leased space.” [A.R.S. §33-1703(A)] And the law defines personal property for these purposes as being “movable property that is not affixed to land and includes but is not limited to goods, wares, merchandise, household items and furnishings and vehicles.” [A.R.S. §33-1701(A)(11)] Note that nowhere does any of that say tenant’s personal property.
Process the sale in the same manner as you would if the tenant did own the vehicle. The only difference is the true owner(s) is/are entitled to the same notices as your tenant, so some duplicate notices may be required. Be sure to name the true owners in your publications as well.
Your storage lien for unpaid rent is on “all personal property stored within each leased space.” [A.R.S. §33-1703(A)] And the law defines personal property for these purposes as being “movable property that is not affixed to land and includes but is not limited to goods, wares, merchandise, household items and furnishings and vehicles.” [A.R.S. §33-1701(A)(11)] Note that nowhere does any of that say tenant’s personal property.
Process the sale in the same manner as you would if the tenant did own the vehicle. The only difference is the true owner(s) is/are entitled to the same notices as your tenant, so some duplicate notices may be required. Be sure to name the true owners in your publications as well.
No. The vehicles are not “abandoned” in the sense that the law requires. They are part of a defaulted contract (lease contract).
MVD was aware of past abuses of the abandoned vehicle statute and was very much opposed to it. You were simply lucky to have not gotten into trouble. Use by a self-storage operator of the abandoned vehicle statute is now specifically outlawed: “If the contents of the occupant’s space include a vehicle, the provisions of section 28-4839 do not apply.” (A.R.S. §28-4839 is the abandoned vehicle statute.) [A.R.S. §33-1704(A)]
It is still possible for a storage operator to have an abandoned vehicle situation and to use the abandoned vehicle law: when you discover a vehicle left abandoned on your property, for example, in your customer parking area. The difference is that the situation did not begin as a lease of space.
MVD was aware of past abuses of the abandoned vehicle statute and was very much opposed to it. You were simply lucky to have not gotten into trouble. Use by a self-storage operator of the abandoned vehicle statute is now specifically outlawed: “If the contents of the occupant’s space include a vehicle, the provisions of section 28-4839 do not apply.” (A.R.S. §28-4839 is the abandoned vehicle statute.) [A.R.S. §33-1704(A)]
It is still possible for a storage operator to have an abandoned vehicle situation and to use the abandoned vehicle law: when you discover a vehicle left abandoned on your property, for example, in your customer parking area. The difference is that the situation did not begin as a lease of space.
By law, liens on vehicles are shown on the vehicle’s title and are recorded at MVD. When you do the search for ownership on the vehicle, any liens will appear on the record you receive.
No. Liens are creatures of state laws, most of which laws require that liens on vehicles be recorded on the title records in the state’s Department of Motor Vehicles.
Send a notice to the lienholder by verified mail identifying the vehicle you have in your possession, and advising of the pending date of sale, amount due to you, and your contact information. The notice should be sent far enough in advance of the sale so the lien holder receives it at least 10 days before the sale.
The lien holder may come forward and reclaim the vehicle; however, the lien holder must pay you the amount you have coming as a condition of taking the vehicle. You may release the vehicle then to the lienholder, even though the lienholder is a stranger to the lease. [A.R.S. §33-1704(D)]
The lien holder may come forward and reclaim the vehicle; however, the lien holder must pay you the amount you have coming as a condition of taking the vehicle. You may release the vehicle then to the lienholder, even though the lienholder is a stranger to the lease. [A.R.S. §33-1704(D)]
Yes, if two things are true:
1) You have begun the auction process and are getting ready to sell the vehicle, and
2) That person is either someone listed as an owner or lienholder on the title record you received from the Motor Vehicle Department.
“If the personal property includes a vehicle, any person listed as a registered owner or lienholder on the records of the department may pay the amount necessary to satisfy the lien, redeem the vehicle and recover possession of the vehicle. The operator is not liable to the occupant or any other person who claims an interest in the vehicle if the operator releases the vehicle to a person listed as a registered owner or lienholder pursuant to this subsection.” [A.R.S. §33-1704(D)]
1) You have begun the auction process and are getting ready to sell the vehicle, and
2) That person is either someone listed as an owner or lienholder on the title record you received from the Motor Vehicle Department.
“If the personal property includes a vehicle, any person listed as a registered owner or lienholder on the records of the department may pay the amount necessary to satisfy the lien, redeem the vehicle and recover possession of the vehicle. The operator is not liable to the occupant or any other person who claims an interest in the vehicle if the operator releases the vehicle to a person listed as a registered owner or lienholder pursuant to this subsection.” [A.R.S. §33-1704(D)]
Go to another MVD office. Although the law empowering self-storage facilities to auction motor vehicles went into effect in 2002, MVD was painfully slow in incorporating the law into its internal processes. Worse, in July of 2008 MVD circulated a policy memo (#10.6.9) supposedly to update the field offices as to the law, but in the process misstated it. The memo even said inspections were required, although that requirement had been repealed in 2007.
A revised policy memo 10.6.9 was sent out by the Department December 26, 2008, but some field offices may still be slow in correcting procedures.
AZSA continues to work with MVD in an effort to smooth out the wrinkles. If you encounter such troubles, please let AZSA know the details: the date, MVD office involved, and facts of your problem. AZSA will try to pass that information on to higher authorities within MVD.
A revised policy memo 10.6.9 was sent out by the Department December 26, 2008, but some field offices may still be slow in correcting procedures.
AZSA continues to work with MVD in an effort to smooth out the wrinkles. If you encounter such troubles, please let AZSA know the details: the date, MVD office involved, and facts of your problem. AZSA will try to pass that information on to higher authorities within MVD.
That depends. The test is not what is stored, nor where it is stored, but by whom it is stored.
A self-storage facility is defined as: “Any real property used for renting or leasing storage spaces in which the occupants themselves customarily store and remove their own personal property on a self-service basis.” [A.R.S. §33-1701(A)(15)]
Likewise, a leased space is defined as: “The storage space or spaces at the self-service storage facility that are rented to an occupant pursuant to a rental agreement.”
Note that neither definition is dependent upon inside vs. outside storage, nor the presence or absence of a building.
Therefore:
If tenants put their RVs or boats into the spaces and remove them on their own, then the operation is a self-storage facility subject to the law.
On the other hand, if a tenant drop off his craft, giving the storage operator the keys, and the storage operator puts it away, and/or in order to collect the vehicle, the tenant must come to the operator and have the operator bring it out, then the facility is a warehouse and is subject to the laws governing warehousing.
Note, the insurance risks and requirements are quite different between the two operations. Be sure to know which you are.
A self-storage facility is defined as: “Any real property used for renting or leasing storage spaces in which the occupants themselves customarily store and remove their own personal property on a self-service basis.” [A.R.S. §33-1701(A)(15)]
Likewise, a leased space is defined as: “The storage space or spaces at the self-service storage facility that are rented to an occupant pursuant to a rental agreement.”
Note that neither definition is dependent upon inside vs. outside storage, nor the presence or absence of a building.
Therefore:
If tenants put their RVs or boats into the spaces and remove them on their own, then the operation is a self-storage facility subject to the law.
On the other hand, if a tenant drop off his craft, giving the storage operator the keys, and the storage operator puts it away, and/or in order to collect the vehicle, the tenant must come to the operator and have the operator bring it out, then the facility is a warehouse and is subject to the laws governing warehousing.
Note, the insurance risks and requirements are quite different between the two operations. Be sure to know which you are.