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Maryland Lien Law.pdf
Courtesy of:
StorageLaws.net
Maryland
Lien Law
� 18-501.
(a) In this subtitle the following words have the meanings indicated.
(b) "Default" means the failure to perform on time any obligation or duty set
forth in the rental agreement.
(c) "Last known address" means that address provided by the occupant in the
rental agreement or the address provided by the occupant in a subsequent written
notice of a change of address.
(d) "Leased space" means the individual storage space at the self-service
facility which is rented to an occupant pursuant to a rental agreement.
(e) "Occupant" means a person, a sublessee, successor, or assign, entitled to
the use of a leased space at a self-service storage facility under a rental
agreement.
(f) (1) "Operator" means the owner, operator, lessor, or sublessor of a
self-service storage facility, an agent, or any other person authorized to
manage the facility.
(2) "Operator" does not mean a warehouseman, unless the operator issues a
warehouse receipt, bill of lading, or other document of title for the personal
property stored.
(g) (1) "Personal property" means movable property, not affixed to land.
(2) "Personal property" includes, but is not limited to, goods, wares,
merchandise, motor vehicles, watercraft, and household items and furnishings.
(h) "Rental agreement" means any written agreement that establishes or modifies
the terms, conditions, or rules concerning the use and occupancy of a
self-service storage facility.
(i) "Self-service storage facility" means any real property used for renting or
leasing individual storage spaces in which the occupants themselves customarily
store and remove their own personal property on a "self-service" basis.
� 18-502.
� 18-503.
(a) The operator of a self-service storage facility has a lien on all personal
property stored within each leased space for rent, labor, or other charges, and
for expenses reasonably incurred in its sale, as provided in this subtitle.
(b) The rental agreement shall contain a statement, in bold type, advising the
occupant:
(1) Of the existence of the lien; and
(2) That property stored in the leased space may be sold to satisfy the lien if
the occupant is in default.
� 18-504.
(a) (1) If the occupant is in default for a period of more than 60 days, the
operator may enforce the lien by selling the property stored in the leased space
at a public sale, for cash.
(2) Proceeds from the sale shall be applied to satisfy the lien, and any surplus
shall be disbursed as provided in subsection (e) of this section.
(b) Before conducting a sale under subsection (a), the operator shall:
(1) Notify the occupant of the default by regular mail at the occupant's last
known address;
(2) Send a second notice of default by certified mail, return receipt requested,
to the occupant at the occupant's last known address which includes:
(i) A statement that the contents of the occupant's leased space are subject to
the operator's lien;
(ii) A statement of the operator's claim, indicating the charges due on the date
of the notice, the amount of any additional charges which shall become due
before the date of sale, and the date those additional charges shall become due;
(iii) A demand for payment of the charges due within a specified time, not less
than 14 days after the date that the notice was mailed;
(iv) A statement that unless the claim is paid within the time stated, the
contents of the occupant's space will be sold at a specified time and place; and
(v) The name, street address, and telephone number of the operator, or his
designated agent, whom the occupant may contact to respond to the notice; and
(3) At least 3 days before the sale, advertise the time, place, and terms of the
sale in a newspaper of general circulation in the jurisdiction where the sale is
to be held.
(c) At any time before a sale under this section, the occupant may pay the
amount necessary to satisfy the lien and redeem the occupant's personal
property.
(d) The sale under this section shall be held at the self-service storage
facility where the personal property is stored.
(e) If a sale is held under this section, the operator shall:
(1) Satisfy the lien from the proceeds of the sale; and
(2) Hold the balance, if any, for delivery on demand to the occupant or any
other recorded lienholders.
(f) A purchaser in good faith of any personal property sold under this subtitle
takes the property free and clear of any rights of:
(1) Persons against whom the lien was valid; and
(2) Other lienholders.
(g) If the operator complies with the provisions of this subtitle, the
operator's liability:
(1) To the occupant shall be limited to the net proceeds received from the sale
of the personal property; and
(2) To other lienholders shall be limited to the net proceeds received from the
sale of any personal property covered by that other lien.
(h) If an occupant is in default, the operator may deny the occupant access to
the leased space.
(i) (1) Unless otherwise specifically provided, all notices required by this
subtitle shall be sent by certified mail, return receipt requested.
(2) (i) Notices sent to the operator shall be sent to the self-service storage
facility where the occupant's property is stored.
(ii) Notices to the occupant shall be sent to the occupant at the occupant's
last known address.
(3) Notices shall be deemed delivered when deposited with the United States
Postal Service, properly addressed as provided in subsection (b), with postage
prepaid.
(j) The operator shall retain a copy of the second notice of default and the
return receipt as provided in subsection (b)(2) of this section for 6 months
following the date of the lien sale.
� 18-505.
Unless the rental agreement specifically provides otherwise and until a lien
sale under this subtitle, the exclusive care, custody, and control of all
personal property stored in the leased self-service storage space remains vested
in the occupant.
� 18-506.
All rental agreements, entered into before July 1, 1983, which have not been
extended or renewed after that date, shall remain valid and may be enforced or
terminated in accordance with their terms or as permitted by any other statute
or law of this State.
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