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12/01/2016

Auction Proceeds

Mint Hill Self Storage - Connie Long

I have a unit that just sold in auction and the proceeds exceeded the amount owed on that unit, but the same tenant has another unit delinquent also. Can the excess money legally be applied to the other delinquent unit? Our lease reads: Proceeds from the sale will be distributed first to satisfy all liens. The remainder if any will be held for the customer for six months, then the funds will be transferred to the appropriate state authority.

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2 Comments

Tex Teixeira on Thursday 12/08/2016 at 11:29PM wrote:

Connie, Interesting. I'm not an attorney so this is just my layman's opinion. If both units are on the same lease then I would think you could lock out both units even if only one were delinquent and certainly keep the excess funds to apply to the second unit. If each unit is on a separate lease document then I am unsure and would seek more expert advise.

D. Pierce on Thursday 12/15/2016 at 02:52PM wrote:

Hi Connie, experience with this would say, that you would need to send the overage back to the customer. The two spaces, if on a separate lease, are two separate entities, and such have to be treated that way. I would think, if they were on the same lease, they would have both been delinquent for the same period. If the customer does not claim the auction overage, you'll have to submit it to the State after the 6 month period. Good luck.

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