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  1. #1
    Jughead is offline Senior Member
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    Default Is there a difference between a Public Sale and an Auction?

    I was talking to another self storage manager today and he stated that at his old company, they called their sales, "Public Sales" instead of auctions and that they were not bound by the laws regarding auctions and auctioneers.

    Does anyone have an opinion on this?

  2. #2
    SMSSId's Avatar
    SMSSId is offline Senior Member
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    Default Re: Is there a difference between a Public Sale and an Auction?

    Public sale or auction?
    I would think it would depend on you state statutes. Many statutes use the two terms interchangeably throughout their statutes. i.e. sale of bonds, surplus equipment or public land may be listed as public sale. However, they are sold at auction and as such, I don’t think is would matter what term was used.

    There are also statutes regarding auctioneers. So how does the self storage statutes read? A simple statement in our statutes “self storage liens shall be brought exclusively under the provisions of this chapter” helps separate self storage from warehousing so I ass u me the word exclusively eliminates the auctioneer portion also.

    We use the term “public sale” in our legal notice because that’s how our legal advisor originally wrote the notice. We use auction sale if it’s a craigslist or other non legal add/notice mainly because people are more familiar with the term auction and the process.

    I guess we could even use "yard sale" or "flea market" because the specific word is not spelled out in the statutes
    Last edited by SMSSId; 5th October 2010 at 12:15 PM.

  3. #3
    LordsBreed's Avatar
    LordsBreed is offline Senior Member
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    Default Re: Is there a difference between a Public Sale and an Auction?

    Not to my knowledge, I recently attended a Self Service Association meeting and when the question came up: "Can a tenant attend their own auction?" The response was "Yes, it is a public sale."

    They seem pretty interchangeable.

  4. #4
    Tom Litton is offline Senior Member
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    Default Re: Is there a difference between a Public Sale and an Auction?

    Quote Originally Posted by Jughead View Post
    I was talking to another self storage manager today and he stated that at his old company, they called their sales, "Public Sales" instead of auctions and that they were not bound by the laws regarding auctions and auctioneers.

    Does anyone have an opinion on this?
    The self-storage industry has many myths about auctions and selling methods. I have heard the myth before that if you call a sale a "public sale" that it does not require an auctioneers license, etc. The reality is that a public sale is an auction and an auction is a public sale. If you openly solicit bids, you are conducting an auction via the public sale method.

    A public sale or auction is a sale of property to the highest bidder. Therefore, it does not matter whether it is a sealed bid auction, silent auction or open bid auction, it is considered a public sale.

    The term public sale was first used in 1595. Traditionally, prospective auction buyers are usually permitted to examine the items for sale beforehand. Self storage provides this, but in a much more limited way, by not allowing bidders to CLOSELY examine the items before bidding.

    Auctions and public sales are the same thing, with the term public sale meaning that the sale is conducted in the open and the public is invited. This is in lieu of a private sale, which could still be an auction but invited members are asked to attend and bid. A few States specify that our sale be conducted as either public or private sales, though very few facilities utilize the private sale method.

  5. #5
    Bob McCarthy is offline Junior Member
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    Question Re: Is there a difference between a Public Sale and an Auction?

    I conduct our lien sale auctions, and am the manager of the complex. Do I need a license in California . I have a bond and the bond # is published with our lien sale advertisement in the local newspaper?

  6. #6
    Tom Litton is offline Senior Member
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    Default Re: Is there a difference between a Public Sale and an Auction?

    Quote Originally Posted by Bob McCarthy View Post
    I conduct our lien sale auctions, and am the manager of the complex. Do I need a license in California . I have a bond and the bond # is published with our lien sale advertisement in the local newspaper?
    California does NOT have a licensing requirement and under the Civil Code 1812.600, you need the bond. In some cities, a premit is required to conduct an auction. You are right, your bond number must appear in any advertisements or in any marketing materials. I think your good Bob.

 

 

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