House Bill 131 (AS PASSED HOUSE AND SENATE)
By: Representatives Reeves of the 99th, Gunter of the 8th, Leverett of the 123rd, Oliver of the
84th, Holcomb of the 101st, 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,
relating to self-service storage facilities, so as to revise the advertisement requirements
before an owner of a self-service storage facility can enforce an owner's lien; to provide for
related matters; to provide for an effective date and applicability; to repeal conflicting laws;
and for other purposes.
BE IT ENACTED BY THE GENERAL ASSEMBLY OF GEORGIA:
SECTION 1.
Article 5 of Chapter 4 of Title 10 of the Official Code of Georgia Annotated, relating to
self-service storage facilities, is amended by revising subsection (a) of Code
Section 10-4-213, relating to enforcement of lien without judicial intervention and execution
of rental agreement, as follows:
"(a) Provided that it complies with the requirements of this Code section, an owner may
enforce the lien without judicial intervention. The owner shall obtain from the occupant
a written rental agreement which includes the following language:
'This agreement, made and entered into this ______ day of ______________, ____, by
and between ____________, hereinafter called Owner, and _______________,
hereinafter called Occupant, whose last known address is _________________. For the
consideration hereinafter stated, Owner agrees to let Occupant use and occupy a space
in the self-service storage facility, known as ____________________, situated in the City
of __________, County of ________, State of Georgia, and more particularly described
as follows: Building #______, Space #_____, Size ________. Said space is to be
occupied and used for the purposes specified herein and subject to the conditions set forth
for a period of _______, beginning on the ______ day of ______________, ____, and
continuing month to month until terminated.
'"Space,'" as used in this agreement, will be that part of the self-service storage facility
as described above. Occupant agrees to pay Owner, as payment for the use of the space
and improvements thereon, the monthly sum of $________. Monthly installments are
payable in advance on or before the first of each month, in the amount of $________, and
a like amount for each month thereafter, until the termination of this agreement.
If any monthly installment is not paid by the seventh calendar day of the month due, or
if any check given in payment is dishonored by the financial institution on which it is
drawn, Occupant shall be deemed to be in default.
Occupant further agrees to pay the sum of one month's fees, which shall be used as a
clean-up and maintenance fund, and is to be used, if required, for the repair of any
damage done to the space and to clean up the space at the termination of the agreement.
In the event that the space is left in a good state of repair, and in a broom-swept
condition, then this amount shall be refunded to Occupant. However, it is agreed to
between the parties that Owner may set off any claims it may have against Occupant from
this fund.
The space named herein is to be used by Occupant solely for the purpose of storing any
personal property belonging to Occupant. Occupant agrees not to store any explosives
or any highly inflammable goods or any other goods in the space which would cause
danger to the space. Occupant agrees that the property will not be used for any unlawful
purposes and Occupant agrees not to commit waste, nor alter, nor affix signs on the
space, and to keep the space in good condition during the term of this agreement.
OWNER HAS A LIEN ON ALL PERSONAL PROPERTY STORED IN
OCCUPANT'S SPACE FOR RENT, FEES FOR THE LATE PAYMENT OF
RENT, LABOR, OR OTHER CHARGES, PRESENT OR FUTURE, IN
RELATION TO THE PERSONAL PROPERTY, AND FOR ITS
PRESERVATION OR EXPENSES REASONABLY INCURRED IN ITS SALE
OR OTHER DISPOSITION PURSUANT TO THIS AGREEMENT.
PERSONAL PROPERTY STORED IN OCCUPANT'S SPACE WILL BE SOLD
OR OTHERWISE DISPOSED OF IF NO PAYMENT HAS BEEN RECEIVED
FOR A CONTINUOUS THIRTY-DAY PERIOD AFTER DEFAULT. IN
ADDITION, UPON OCCUPANT'S DEFAULT, OWNER MAY WITHOUT
NOTICE DENY OCCUPANT ACCESS TO THE PERSONAL PROPERTY
STORED IN OCCUPANT'S SPACE UNTIL SUCH TIME AS PAYMENT IS
RECEIVED. IF ANY MONTHLY INSTALLMENT IS NOT MADE BY THE
SEVENTH CALENDAR DAY OF THE MONTH DUE, OR IF ANY CHECK
GIVEN IN PAYMENT IS DISHONORED BY THE FINANCIAL
INSTITUTION ON WHICH IT IS DRAWN, OCCUPANT IS IN DEFAULT
FROM DATE PAYMENT WAS DUE.
I hereby agree that all notices other than bills and invoices shall be given by hand
delivery, verified mail, or email at the following addresses:
___________________________________________________________ (hand delivery)
____________________________________________________________ (verified mail)
___________________________________________________________ (email).
and I further understand that I may designate to <del>owner</del> <ins>Owner</ins> an agent to receive such
notice by providing:
___________________________________________________________ (hand delivery)
____________________________________________________________ (verified mail)
___________________________________________________________ (email).
For purposes of Owner's lien: '"personal property <ins>'"</ins> means movable property, not affixed
to land, and includes, but is not limited to, goods, wares, merchandise, motor vehicles,
trailers, watercraft, household items, and furnishings; '"last known address <ins>'"</ins> means the
street address or post office box address provided by Occupant in the latest rental
agreement or the address provided by Occupant in a subsequent written notice of a
change of address by hand delivery, verified mail, or email.
Owner's lien is superior to any other lien or security interest, except those which are
evidenced by a certificate of title or perfected and recorded prior to the date of this rental
agreement in Georgia, in the name of Occupant, either in the county of Occupant's 'last
known address' or in the county where the self-service storage facility is located, except
any tax lien as provided by law and except those liens or security interests of whom
Owner has knowledge through Occupant's disclosure in this rental agreement or through
other written notice. Occupant attests that the personal property in Occupant's space(s)
is free and clear of all liens and secured interests except for ____________. Owner's lien
attaches as of the date the personal property is brought to the self-service storage facility.
Except as otherwise specifically provided in this rental agreement, the exclusive care,
custody, and control of any and all personal property stored in the leased space shall
remain vested in Occupant. Owner does not become a bailee of Occupant's personal
property by the enforcement of Owner's lien.
If Occupant has been in default continuously for thirty (30) days, Owner may enforce its
lien, provided Owner shall comply with the following procedure:
Occupant shall be notified of Owner's intent to enforce Owner's lien by written notice
delivered in person, by verified mail, or by email. Owner also shall notify other parties
with superior liens or security interests as defined in this rental agreement. A notice
given pursuant to this rental agreement shall be presumed sent when it is deposited with
the United States Postal Service or the statutory overnight delivery service properly
addressed with postage or delivery fees prepaid or sent by email. If Owner sends notice
of a pending sale of property to Occupant's last known email address and does not
receive a nonautomated response or a receipt of delivery to the email address, Owner
shall send notice of the sale to Occupant by verified mail to Occupant's last known
address or to the last known address of the designated agent of the Occupant before
proceeding with the sale.
Owner's notice to Occupant shall include an itemized statement of Owner's claim
showing the sum due at the time of the notice and the date when the sum became due.
Owner's notice shall notify Occupant of denial of access to the personal property and
provide the name, street address, email address, and telephone number of Owner or its
designated agent, whom Occupant may contact to respond to this notice. Owner's
notice shall demand payment within a specified time, not less than fourteen (14) days
after delivery of the notice. It shall state that, unless the claim is paid, within the time
stated in the notice, the personal property will be advertised for public sale to the
highest bidder, and will be sold at a public sale to the highest bidder, at a specified time
and place.
After the expiration of the time given in Owner's notice, Owner shall publish an
advertisement of the public sale to the highest bidder, once <del>a week, for two consecutive
weeks,</del> in the legal organ for the county where the self-service storage facility is located;
<ins>provided, however, that the advertisement of the sale may be done in any other
commercially reasonable manner when the property being sold is anything other than a
motor vehicle, motorcycle, trailer, any watercraft, or any recreational vehicle.</ins> The
<ins>advertisement and</ins> sale shall be deemed commercially reasonable if at least three (3)
independent bidders attend the sale at the time and place advertised. '"Independent bidder
<ins>'"</ins> means a bidder who is not related to and who has no controlling interest in, or common
pecuniary interest with, Owner or any other bidder. The advertisement shall include: a
brief and general description of the personal property, reasonably adequate to permit its
identification; the address of the self-service storage facility, and the number, if any, of
the space where the personal property is located, and the name of Occupant; and the time,
place, and manner of the public sale. The public sale to the highest bidder shall take
place not sooner than fifteen (15) days after <del>the first</del> publication. Regardless of whether
a sale involves the property of more than one Occupant, a single advertisement may be
used to advertise the disposal of property at the sale. A public sale includes offering the
property on a publicly accessible website that regularly conducts online auctions of
personal property. Such sale shall be considered incidental to the self-storage business
and no license shall be required.
If no one purchases the property at the public sale and if Owner has complied with the
foregoing procedures, Owner may otherwise dispose of the property and shall notify
Occupant of the action taken. Any sale or disposition of the personal property shall be
held at the self-service storage facility or at the nearest suitable place to where the
personal property is held or stored.
Before any sale or other disposition of personal property pursuant to this agreement,
Occupant may pay the amount necessary to satisfy the lien and the reasonable expenses
incurred and thereby redeem the personal property and thereafter Owner shall have no
liability to any person with respect to such personal property.
A Purchaser in good faith of the personal property sold to satisfy Owner's lien takes the
property free of any rights of persons against whom the lien was valid, despite
noncompliance by Owner with the requirements of this agreement.
In the event of a sale, Owner may satisfy his or her lien from the proceeds of the sale.
Owner shall hold the balance of the proceeds, if any, for Occupant or any notified secured
interest holder. If not claimed within two years of the date of sale, the balance of the
proceeds shall be disposed of in accordance with Article 5 of Chapter 12 of Title 44, the
'"Disposition of Unclaimed Property Act.'" In no event shall Owner's liability exceed the
proceeds of the sale.
If the rental agreement contains a limit on the value of property stored in Occupant's
storage space, the limit shall be deemed to be the maximum value of the property stored
in that space.
If the property upon which the lien is claimed is a motor vehicle, trailer, or watercraft and
rent and other charges related to the property remain unpaid or unsatisfied for 60 days
following the maturity of the obligation to pay rent, Owner may have the property towed
in lieu of foreclosing on the lien. If a motor vehicle, trailer, or watercraft is towed as
authorized in this section, Owner shall not be liable for the motor vehicle, trailer, or
watercraft or any damages to the motor vehicle, trailer, or watercraft once the tower takes
possession of the property.'"
SECTION 2.
The Act shall become effective on July 1, 2025, and shall apply to any actions for lien
enforcement without judicial intervention initiated on or after such date.
SECTION 3.
All laws and parts of laws in conflict with this Act are repealed.