The Arkansas Governor signed a Bill to modify advertising in self-storage sales. The Governor of Arkansas signed House Bill 1027/Act 363 which allows for the elimination of newspaper advertising, with one small caveat. That caveat is that you must have at least 3 independent bidders “participate” in the lien sale when it occurs in order to make your sale commercially reasonable.
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 independent bidders ‘participate’ in the sale at the time and place advertised”. Participating in the sale under the Statute means that 3 independent people must be physically present at the sale. Interestingly, the term “participate” in the new Arkansas Statute does not mean they need to bid, it means the bidders must either make a monetary offer to purchase the property in person or online, or be physically present, in person or online, for the purposes of viewing or purchasing the property. For those of you choosing not to advertise in a newspaper, this will require you to keep track of the number of independent bidders that attend your sale, live or online, and make a difficult decision what to do if at least 3 independent 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 went into effect immediately when the Governor signed the law on March 15, 2021.
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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