In late June, 2020, Tennessee passed statute to modify advertising in self-storage sales. The Governor of Tennessee has now signed House Bill 1073 which allows for advertisement of the sale outside of the traditional and formerly required route of a newspaper of general circulation. While the Statute is somewhat vague, the former requirement of one (1) ad in a newspaper of general circulation has been changed to “that the owner shall advertise the sale of the personal property in a commercially reasonable manner”. It will be up to you to decide how to advertise but in all instances, the advertisement in whatever form must result in a sale that is “commercially reasonable”. The method is deemed commercially reasonable only if not less than “3 potential bidders participate in the sale at the time and place advertised”. For those of you doing live sales, this will require you to keep track of the number of bidders that attend your sale, and make a difficult decision what to do if at least 3 potential bidders do not appear for your sale at the time and place advertised, if you are using online lien sales, you will be responsible for keeping track of the number of online persons who at least look at the Unit as a potential bidder. These changes go into effect July 15, 2020.
There is no reason at this point, to change your Rental Agreement, unless you wish to reduce or eliminate your advertising charge that was in your Rental Agreement, however, if you have any questions, please feel free to contact our office.
Jeffrey J. Greenberger is a Partner with the law firm of Greenberger & Brewer, LLP, in Cincinnati, Ohio and is licensed to practice in the states of Ohio and Kentucky. Mr. Greenberger’s practice focuses primarily on representing the owners and operators of commercial real estate, including self-storage owners and operators.
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