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Storage Lien Explained: Legal Insights and Key Considerations
Definition & Meaning
A storage lien is a legal claim against a vehicle or watercraft for unpaid storage fees. This type of lien allows the storage facility or marina to retain possession of the vehicle until the owner pays the owed charges. Storage liens can apply to various types of vehicles, including cars, boats, and aircraft, and are often governed by state laws that outline the rights and responsibilities of both the lienholder and the owner.
Table of content
Legal Use & context
Storage liens are primarily used in civil law contexts. They are relevant in situations where a vehicle or watercraft is left in a storage facility or marina without payment. Legal practitioners may encounter storage liens in cases involving unpaid storage fees or disputes over vehicle ownership. Users can often manage these situations through legal forms provided by services like US Legal Forms, which offer templates for filing and enforcing storage liens.
Key legal elements
Real-world examples
Here are a couple of examples of abatement:
Example 1: A car owner leaves their vehicle at a public garage for several months without paying the storage fees. The garage owner can place a lien on the vehicle, preventing the owner from retrieving it until the fees are settled.
Example 2: A boat owner fails to pay for storage at a marina. The marina can enforce a storage lien, allowing them to keep the boat until the outstanding charges are paid (hypothetical example).
Relevant laws & statutes
Several state statutes govern storage liens. For example:
Virginia: Va. Code Ann. § 43-32 outlines the rights of marinas and hangars to place liens on boats and aircraft for unpaid storage fees.
New Hampshire: RSA 450:1 recognizes the garageman's lien for vehicles and aircraft left in their care.
State-by-state differences
State
Key Provisions
Virginia
Allows liens for boats and aircraft under specific conditions.
New Hampshire
Recognizes liens for vehicles and aircraft in public garages.
This is not a complete list. State laws vary, and users should consult local rules for specific guidance.
Comparison with related terms
Term
Definition
Difference
Mechanic's Lien
A lien placed by a mechanic for unpaid repair work.
Specifically related to vehicle repairs, whereas a storage lien pertains to unpaid storage fees.
Possessory Lien
A lien that gives the holder the right to retain possession of property until a debt is paid.
Storage liens are a type of possessory lien but are specific to storage situations.
Common misunderstandings
What to do if this term applies to you
If you find yourself facing a storage lien, consider the following steps:
Review any agreements or contracts related to the storage of your vehicle.
Contact the storage facility to discuss the outstanding fees and possible payment arrangements.
Explore legal templates from US Legal Forms to help manage the situation effectively.
If the matter becomes complex, seek assistance from a legal professional.
Find the legal form that fits your case
Browse our library of 85,000+ state-specific legal templates.
Typical fees: Varies by state and storage facility.
Jurisdiction: State law governs storage liens.
Possible penalties: Loss of property until fees are paid.
Key takeaways
Frequently asked questions
A storage lien is a legal claim against a vehicle or watercraft for unpaid storage fees, allowing the storage facility to retain possession until payment is made.
To remove a storage lien, you typically need to pay the outstanding fees and may need to complete specific legal forms to release the lien.
Yes, but they must follow state laws regarding notification and the sale process before selling the vehicle.