Home » Articles » Titles » How to File a Storage Lien for Vehicles: An Overview of What You Need To Know
If you rent or own a storage facility to store your customers’ vehicles, you may have an opportunity to recoup some of your expenses with a storage lien. With a storage lien, you can recover the costs of storing a vehicle if the owner does not pay for the services within a certain time period. This helps incentivize owners to pay promptly and lower your chances of becoming stuck with the bill if they don’t. In this post, we’ll go over everything you need to know about how to file a storage lien for vehicles so that you can begin establishing your own policies and procedures immediately. Read on to learn more!
A storage lien is a legal claim on a vehicle that’s in storage. It allows the person storing the vehicle (usually the owner or operator of a car storage facility) to recover their expenses if the vehicle owner does not pay a certain amount of money (usually the amount owed for storage services) within a certain amount of time. You’re allowed to file a storage lien against a vehicle if the owner of the vehicle has failed to pay the amount due for storage services within 30 days. If the vehicle owner fails to pay the amount due for 60 days, you can file a claim of lien against his or her vehicle with the county clerk’s office. This makes it easier for you to recoup the money you’re owed, but it also gives the vehicle owner ample opportunity to dispute the claim and get it dismissed.
You can only file a storage lien against a vehicle if all of the following are true:
Here’s what you’ll need to do to file a storage lien against a vehicle: – Mark the vehicle as “stored.” This will allow you to keep track of the date that the vehicle first came into your possession, which you’ll need to do to make sure that the vehicle is in your possession for at least 15 days.
Here are a few things to keep in mind while filing a storage lien against a vehicle:
The process of filing a storage lien is a great way to protect yourself against customers who don’t pay promptly. It’s important to note that even though you can file a storage lien after the vehicle has been in your possession for 15 days, you should send the owner of the vehicle a written demand for payment as soon as you take the vehicle into storage. This gives the owner ample time to pay the amount owed before you file a lien. The best way to protect yourself when storing vehicles for customers is to make sure that you get everything in writing. Have the customer sign a contract that states that they are responsible for paying for the storage fees if they don’t pay within a certain amount of time. For more information, reach out to your state’s or local government authority to find out what the laws are in your jurisdiction.
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