Storage & Repair Documents

Before goods can be sold you will have to make sure that any conflicting liens have been or will be discharged.

Search for liens prior to sending notice to make sure all interested parties are included. All notices concerning this action must be issued to any lien-holders with an interest in the goods.

If the stored goods have a registered owner (e.g. a motor vehicle), verify that the name matches that of your customer.

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Search for Liens

Were the goods deposited into storage by the owner (or someone on behalf of the owner)?

If yes, a Notice of Lien is not required! Make sure to keep track of any documentation or correspondence that confirms this to be the case.

If no, a Notice of Lien must be issued to the owner and any registered lien-holders.

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Once a lien has been established, the next step is to notify the owner and other interested parties that the storer intends to sell the stored goods if charges and incurred costs are not paid.

The notice must be issued by registered mail or hand delivery and must allow recipients a certain amount of time to redeem the goods before a sale can take place.

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If the storage charges remain outstanding after the demand periods outlined in the notice of intention to sell have passed, the storer can proceed with advertising a sale.

All provinces (except Ontario) require for the upcoming sale to be advertised in a local newspaper. This advertisement must be posted for the sale to be legal.

In addition to the legally required ad, most storers choose to advertise the sale using more current methods such as online marketplaces etc.

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When all notice and advertisement requirements have been completed, the stored goods can be sold by public auction (or private sale if in Ontario). Always double-check for liens and confirm that the title (if applicable) is ready to be transferred before conducting a sale.

Storers should always try to make sure sale conditions are optimal for getting as high of a price as possible.  This not only helps for paying back the incurred storage and costs in full, but also for protecting against claims that the goods were sold for less than market value.

Proceeds of the sale can be used to pay the storage charges and any costs incurred throughout the storage lien process. A notice detailing how proceeds have been applied and whether a surplus is available must be issued to all interested parties.

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