One of the most important parts in the process of selling stored goods to recoup unpaid storage, the Notice of Intention to Sell can seem more daunting than it really is. Keep reading to understand the ins and outs of this powerful document, or get started on creating and sending your own Notice of Intention to Sell now!
What is a Notice of Intention to Sell?
A notice of intention to sell is used to inform the owner and any other interested parties (such as lien holders) that the stored items will be sold if the storage arrears and costs are not paid on or before a certain date. The notice also includes details of the potential sale time and date if it becomes necessary.
Why should a Notice of Intention to Sell be used?
If a customer is not coming through with payments as expected, the storage facility can take this first step towards eventually selling the stored items to recoup the unpaid charges. In addition to getting the storer one step closer to being in a legal position to sell the goods, this notice usually serves as a good wake-up call to non-paying customers, making it clear that if they continue to ignore the accruing storage charges they may end up losing their property.
When should a Notice of Intention to Sell be issued?
Though Nova Scotia is the only province that requires the storage charges to be 90 days in arrears before issuing this notice, all storers should make sure that they have complied with any Notice of Lien requirements (if necessary) before proceeding. Many storers also choose to make some kind of effort to have the arrears paid before proceeding with this notice (e.g. email and phone call reminders, formally demanding payment, etc.) as it can be viewed by the customer as extreme which could hurt the relationship going forward.
How should a Notice of Intention to Sell be issued?
A notice of intention to sell has to be issued per the regulation of each province’s Act, being either hand delivery to the recipient or prepaid registered mail.
Registered mail is a trackable form of delivery that allows the sender to see once the letter has been received and signed for. Registered letters have to be taken to the post office to be processed by Canada Post. See our registered mail services for hassle-free delivery with just a few clicks of the mouse.
Hand delivery is relatively self-explanatory. It involves the landlord or their authorized agent physically delivering the letter to the rental suite and/or any other delivery addresses for the tenant. If using this option, you will likely need to swear an affidavit of service in front of a notary or commissioner for taking oaths.
Where should a Notice of Intention to Sell be issued?
A notice of intention to sell should be issued to all known and provided addresses for the owner(s) and other interested parties. For the owner(s) this would typically be the address on any ownership or registration documents, and for interested parties like lien holders, the address shown on their lien. In addition, storers may use Google to try to find other valid addresses to show they have done their due diligence to make sure the notice makes its way to all recipients.
Where can you find out more?
Further details on notices of sale can be found by clicking the respective act of your province below:
Alberta’s Warehousemen’s Lien Act
British Columbia’s Warehouse Lien Act
Saskatchewan’s Commercial Liens Act
Manitoba’s Warehousemen’s Lien Act
Ontario’s Repair and Storage Liens Act
Newfoundland’s Warehouser’s Lien Act
New Brunswick’s Storer’s Lien Act
Nova Scotia’s Storage Warehouse Keepers Act
Prince Edward Island’s Warehousemen’s Lien Act
Northwest Territories’ Warehouse Keepers Lien Act
