25 HB 131/AP
House Bill 131 (AS PASSED HOUSE AND SENATE)
By: Representatives Reeves of the 99
th
, Gunter of the 8
th
, Leverett of the 123
rd
, Oliver of the
84
th
, Holcomb of the 101
st
, and others
A BILL TO BE ENTITLED
AN ACT
To amend Article 5 of Chapter 4 of Title 10 of the Official Code of Georgia Annotated,
1
relating to self-service storage facilities, so as to revise the advertisement requirements2
before an owner of a self-service storage facility can enforce an owner's lien; to provide for3
related matters; to provide for an effective date and applicability; to repeal conflicting laws;4
and for other purposes.5
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:6
SECTION 1.7
Article 5 of Chapter 4 of Title 10 of the Official Code of Georgia Annotated, relating to8
self-service storage facilities, is amended by revising subsection (a) of Code9
Section 10-4-213, relating to enforcement of lien without judicial intervention and execution10
of rental agreement, as follows:11
"(a) Provided that it complies with the requirements of this Code section, an owner may12
enforce the lien without judicial intervention. The owner shall obtain from the occupant13
a written rental agreement which includes the following language:14
'
This agreement, made and entered into this ______ day of ______________, ____, by15
and between ____________, hereinafter called Owner, and _______________,16
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hereinafter called Occupant, whose last known address is _________________. For the
17
consideration hereinafter stated, Owner agrees to let Occupant use and occupy a space18
in the self-service storage facility, known as ____________________, situated in the City19
of __________, County of ________, State of Georgia, and more particularly described20
as follows: Building #______, Space #_____, Size ________. Said space is to be21
occupied and used for the purposes specified herein and subject to the conditions set forth22
for a period of _______, beginning on the ______ day of ______________, ____, and23
continuing month to month until terminated.24
'
"Space,'" as used in this agreement, will be that part of the self-service storage facility25
as described above. Occupant agrees to pay Owner, as payment for the use of the space26
and improvements thereon, the monthly sum of $________. Monthly installments are27
payable in advance on or before the first of each month, in the amount of $________, and28
a like amount for each month thereafter, until the termination of this agreement.29
If any monthly installment is not paid by the seventh calendar day of the month due, or30
if any check given in payment is dishonored by the financial institution on which it is31
drawn, Occupant shall be deemed to be in default.32
Occupant further agrees to pay the sum of one month's fees, which shall be used as a33
clean-up and maintenance fund, and is to be used, if required, for the repair of any34
damage done to the space and to clean up the space at the termination of the agreement. 35
In the event that the space is left in a good state of repair, and in a broom-swept36
condition, then this amount shall be refunded to Occupant. However, it is agreed to37
between the parties that Owner may set off any claims it may have against Occupant from38
this fund.39
The space named herein is to be used by Occupant solely for the purpose of storing any40
personal property belonging to Occupant. Occupant agrees not to store any explosives41
or any highly inflammable goods or any other goods in the space which would cause42
danger to the space. Occupant agrees that the property will not be used for any unlawful43
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purposes and Occupant agrees not to commit waste, nor alter, nor affix signs on the
44
space, and to keep the space in good condition during the term of this agreement.45
OWNER HAS A LIEN ON ALL PERSONAL PROPERTY STORED IN46
OCCUPANT'S SPACE FOR RENT, FEES FOR THE LATE PAYMENT OF47
RENT, LABOR, OR OTHER CHARGES, PRESENT OR FUTURE, IN48
RELATION TO THE PERSONAL PROPERTY, AND FOR ITS49
PRESERVATION OR EXPENSES REASONABLY INCURRED IN ITS SALE50
OR OTHER DISPOSITION PURSUANT TO THIS AGREEMENT. 51
PERSONAL PROPERTY STORED IN OCCUPANT'S SPACE WILL BE SOLD52
OR OTHERWISE DISPOSED OF IF NO PAYMENT HAS BEEN RECEIVED53
FOR A CONTINUOUS THIRTY-DAY PERIOD AFTER DEFAULT. IN54
ADDITION, UPON OCCUPANT'S DEFAULT, OWNER MAY WITHOUT55
NOTICE DENY OCCUPANT ACCESS TO THE PERSONAL PROPERTY56
STORED IN OCCUPANT'S SPACE UNTIL SUCH TIME AS PAYMENT IS57
RECEIVED. IF ANY MONTHLY INSTALLMENT IS NOT MADE BY THE58
SEVENTH CALENDAR DAY OF THE MONTH DUE, OR IF ANY CHECK59
GIVEN IN PAYMENT IS DISHONORED BY THE FINANCIAL60
INSTITUTION ON WHICH IT IS DRAWN, OCCUPANT IS IN DEFAULT61
FROM DATE PAYMENT WAS DUE.62
I hereby agree that all notices other than bills and invoices shall be given by hand63
delivery, verified mail, or email at the following addresses:64
___________________________________________________________ (hand delivery)65
____________________________________________________________ (verified mail)66
___________________________________________________________ (email).67
and I further understand that I may designate to owner
Owner an agent to receive such68
notice by providing:69
___________________________________________________________ (hand delivery)70
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____________________________________________________________ (verified mail)
71
___________________________________________________________ (email).72
For purposes of Owner's lien: '
"personal property '" means movable property, not affixed73
to land, and includes, but is not limited to, goods, wares, merchandise, motor vehicles,74
trailers, watercraft, household items, and furnishings; '"last known address '" means the75
street address or post office box address provided by Occupant in the latest rental76
agreement or the address provided by Occupant in a subsequent written notice of a77
change of address by hand delivery, verified mail, or email.78
Owner's lien is superior to any other lien or security interest, except those which are79
evidenced by a certificate of title or perfected and recorded prior to the date of this rental80
agreement in Georgia, in the name of Occupant, either in the county of Occupant's 'last81
known address' or in the county where the self-service storage facility is located, except82
any tax lien as provided by law and except those liens or security interests of whom83
Owner has knowledge through Occupant's disclosure in this rental agreement or through84
other written notice. Occupant attests that the personal property in Occupant's space(s)85
is free and clear of all liens and secured interests except for ____________. Owner's lien86
attaches as of the date the personal property is brought to the self-service storage facility.87
Except as otherwise specifically provided in this rental agreement, the exclusive care,88
custody, and control of any and all personal property stored in the leased space shall89
remain vested in Occupant. Owner does not become a bailee of Occupant's personal90
property by the enforcement of Owner's lien.91
If Occupant has been in default continuously for thirty (30) days, Owner may enforce its92
lien, provided Owner shall comply with the following procedure:93
Occupant shall be notified of Owner's intent to enforce Owner's lien by written notice94
delivered in person, by verified mail, or by email. Owner also shall notify other parties95
with superior liens or security interests as defined in this rental agreement. A notice96
given pursuant to this rental agreement shall be presumed sent when it is deposited with97
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the United States Postal Service or the statutory overnight delivery service properly
98
addressed with postage or delivery fees prepaid or sent by email. If Owner sends notice99
of a pending sale of property to Occupant's last known email address and does not100
receive a nonautomated response or a receipt of delivery to the email address, Owner101
shall send notice of the sale to Occupant by verified mail to Occupant's last known102
address or to the last known address of the designated agent of the Occupant before103
proceeding with the sale.104
Owner's notice to Occupant shall include an itemized statement of Owner's claim105
showing the sum due at the time of the notice and the date when the sum became due. 106
Owner's notice shall notify Occupant of denial of access to the personal property and107
provide the name, street address, email address, and telephone number of Owner or its108
designated agent, whom Occupant may contact to respond to this notice. Owner's109
notice shall demand payment within a specified time, not less than fourteen (14) days110
after delivery of the notice. It shall state that, unless the claim is paid, within the time111
stated in the notice, the personal property will be advertised for public sale to the112
highest bidder, and will be sold at a public sale to the highest bidder, at a specified time113
and place.114
After the expiration of the time given in Owner's notice, Owner shall publish an115
advertisement of the public sale to the highest bidder, once a week, for two consecutive
116
weeks, in the legal organ for the county where the self-service storage facility is located;117
provided, however, that the advertisement of the sale may be done in any other118
commercially reasonable manner when the property being sold is anything other than a119
motor vehicle, motorcycle, trailer, any watercraft, or any recreational vehicle. The 120
advertisement and sale shall be deemed commercially reasonable if at least three (3)121
independent bidders attend the sale at the time and place advertised. '"Independent bidder122
'" means a bidder who is not related to and who has no controlling interest in, or common123
pecuniary interest with, Owner or any other bidder. The advertisement shall include: a124
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brief and general description of the personal property, reasonably adequate to permit its
125
identification; the address of the self-service storage facility, and the number, if any, of126
the space where the personal property is located, and the name of Occupant; and the time,127
place, and manner of the public sale. The public sale to the highest bidder shall take128
place not sooner than fifteen (15) days after the first
publication. Regardless of whether129
a sale involves the property of more than one Occupant, a single advertisement may be130
used to advertise the disposal of property at the sale. A public sale includes offering the131
property on a publicly accessible website that regularly conducts online auctions of132
personal property. Such sale shall be considered incidental to the self-storage business133
and no license shall be required.134
If no one purchases the property at the public sale and if Owner has complied with the135
foregoing procedures, Owner may otherwise dispose of the property and shall notify136
Occupant of the action taken. Any sale or disposition of the personal property shall be137
held at the self-service storage facility or at the nearest suitable place to where the138
personal property is held or stored.139
Before any sale or other disposition of personal property pursuant to this agreement,140
Occupant may pay the amount necessary to satisfy the lien and the reasonable expenses141
incurred and thereby redeem the personal property and thereafter Owner shall have no142
liability to any person with respect to such personal property.143
A Purchaser in good faith of the personal property sold to satisfy Owner's lien takes the144
property free of any rights of persons against whom the lien was valid, despite145
noncompliance by Owner with the requirements of this agreement.146
In the event of a sale, Owner may satisfy his or her lien from the proceeds of the sale. 147
Owner shall hold the balance of the proceeds, if any, for Occupant or any notified secured148
interest holder. If not claimed within two years of the date of sale, the balance of the149
proceeds shall be disposed of in accordance with Article 5 of Chapter 12 of Title 44, the150
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'"Disposition of Unclaimed Property Act.'" In no event shall Owner's liability exceed the151
proceeds of the sale.152
If the rental agreement contains a limit on the value of property stored in Occupant's153
storage space, the limit shall be deemed to be the maximum value of the property stored154
in that space.155
If the property upon which the lien is claimed is a motor vehicle, trailer, or watercraft and156
rent and other charges related to the property remain unpaid or unsatisfied for 60 days157
following the maturity of the obligation to pay rent, Owner may have the property towed158
in lieu of foreclosing on the lien. If a motor vehicle, trailer, or watercraft is towed as159
authorized in this section, Owner shall not be liable for the motor vehicle, trailer, or160
watercraft or any damages to the motor vehicle, trailer, or watercraft once the tower takes161
possession of the property.'"162
SECTION 2.163
The Act shall become effective on July 1, 2025, and shall apply to any actions for lien164
enforcement without judicial intervention initiated on or after such date.165
SECTION 3.166
All laws and parts of laws in conflict with this Act are repealed.167
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