Legal Question in Landlord & Tenant Law in Iowa
My husband and I own a storage facility. We have had a fishing boat in storage for a number of years and the owner has not made payments for most of those years. We know that the owner has sold his business and left town due to "financial" issues. We need to know what we have the right to do with the boat. We have tried but are unable to reach him and he has not made contact with us in years. Can we legally sell the boat to get our rental fees? How do we secure the title?
1 Answer from Attorneys
Iowa Code Chapter 578A describes the storage unit owner's lien and what is needed to enforce it.
578A.3 LIEN.
The owner of a self-service storage facility and the heirs,
executors, administrators, successors, and assigns have a possessory
lien upon all personal property located at a self-service storage
facility for rent, labor, or other reasonable charges, in relation to
the storage of the personal property, and for expenses necessary for
its preservation, or expenses reasonably incurred in its sale or
other disposition pursuant to this chapter. The lien provided for in
this section shall not have priority over a lien or security interest
perfected prior to the time the personal property is placed within or
upon the self-storage facility. The lien attaches as of the date the
personal property is brought to the self-service storage facility.
Section History: Recent Form
84 Acts, ch 1130, � 3
578A.4 ENFORCEMENT OF LIEN.
An owner's lien for a claim which has become due may be satisfied
as follows:
1. The occupant shall be notified by delivering in person with
acceptance to be signed by the occupant or by mailing by certified
mail to the last known address of the occupant, a notice which shall
include:
a. An itemized statement of the owner's claim showing the
amount due at the time of the notice and the date when the amount
became due.
b. A brief and general description of the personal property
subject to the lien. The description shall be reasonably adequate to
permit the person notified to identify it, except that any container
including a trunk, valise, or box that is locked, fastened, sealed,
or tied in a manner which deters immediate access to its contents
shall be described as such without describing its contents.
c. A statement that the occupant is denied access to the
personal property, if a denial is permitted under the rental
agreement. The statement shall provide the name, street address, and
telephone number of the owner, or the owner's designated agent, whom
the occupant may contact to respond to this notice.
d. A demand for payment within a specified time not less than
fourteen days after delivery of the notice.
e. A conspicuous statement that unless the claim is paid
within the time stated in the notice, the personal property will be
advertised for sale or other disposition, and will be sold or
otherwise disposed of at a specified time and place.
2. A notice mailed by certified mail pursuant to subsection 1 is
made and completed when the notice is enclosed in a sealed envelope
with the proper postage on the envelope, addressed to the occupant or
successor at the last known mailing address, and deposited in a mail
receptacle provided by the United States postal service.
3. After the expiration of the time given in the notice, an
advertisement of the sale or other disposition shall be published
once a week for two consecutive weeks in a newspaper of general
circulation in the county where the self-service storage facility is
located. The advertisement shall include:
a. A brief and general description of the personal property
reasonably adequate to permit its identification as provided for in
subsection 1, paragraph "b".
b. The address of the self-service storage facility, the
number, if any, of the space where the personal property is located,
and the name of the occupant.
c. The time, place, and manner of the sale or other
disposition. The sale or other disposition shall take place not
sooner than fifteen days after the first publication. If there is no
newspaper of general circulation where the self-service storage
facility is located, the advertisement shall be posted at least ten
days before the date of the sale or other disposition in at least six
conspicuous places in the neighborhood where the self-service storage
facility is located.
4. A sale or other disposition of the personal property shall
conform to the terms of the notification provided for in this
section.
5. A sale or other 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.
6. Before a sale or other disposition of personal property is
made pursuant to this section, the occupant may pay the amount
necessary to satisfy the lien, and the reasonable expenses incurred
under this section, and redeem the personal property. Upon receipt
of such payment, the owner shall return the personal property.
7. A purchaser in good faith of the personal property sold to
satisfy the lien takes the property free of any rights of persons
against whom the lien was valid, despite noncompliance by the owner
with the requirements of this section. The purchaser shall apply for
a new title to a vehicle by the procedures outlined in section
321.47. For all other property which has a written title, the
purchaser shall follow the applicable procedures for the property for
the transfer of title by operation of law.
8. In the event of a sale under this section, the owner may
satisfy the lien from the proceeds of the sale, but shall hold the
balance in a segregated escrow account for a period of ninety days
for delivery on demand to the occupant. If the occupant does not
claim the balance within ninety days, the moneys shall be paid to the
county treasurer in the county where the facility is located. The
county treasurer shall hold the money for a period of two years. If
a claim is not made by the owner for the funds, then the funds shall
become the property of the county. There shall be no further
recourse by any person against the owner for an action pursuant to
this section.
Section History: Recent Form
84 Acts, ch 1130, � 4
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