8 minute read
LEGAL
3, 2, 1, Launch! 2020 updated agreements now available
By Andrea Bowman
UPDATED CUSTOMER STORAGE AGREEMENTS FOR AUSTRALIAN MEMBERS:
The SSAA updated agreements are now available online from the Members Only section of our website for members to download and use immediately. This article provides insights to the updates noting that there are changes to layout due to ACCC requirements and some specific changes for members based in South Australia.
YOU ASKED AND WE LISTENED:
We have made improvements to the way you can do business with your storers by making the following improvements: l Instruction Sheets have been provided for each Agreement; therefore making it easier to induct new staff into signing up storers/customers on any of our
Agreements; l Column formatting from
Agreements has been removed; l The main points section of the
Agreements has been refined and now includes at most 10 main points utilising simple language that is easy
for facility operators to convey to storage customers; l Full Terms of the Agreements have been expanded, to include defined terms as to the exact meaning of the words in our
Agreements due to ACCC unfair contract requirements l The updated Agreements state that the Storer is solely responsible for checking the Space and satisfying themselves that the Space is suitable for their purposes and an acknowledgment by the storer that the storage unit is approximately the size advertised by the facility. l The Agreements acknowledge that the Agreement does not grant the
Storer a lease of the Space; l Privacy disclosure terms have been included in the Agreements. l Storers will automatically be opted into receiving correspondence electronically unless they specifically opt out. Previously, storers needed to opt in. l In relation to insurance, there will only be two (2) options on the updated Agreements, see example below: 1. I/We have adequate insurance with (insert details of insurer and policy number) for the goods that we are storing. 2. I/We don’t have insurance and understand that if the goods are lost or damaged I/We may have to bear that loss. Further, that if my/our goods cause any damage or loss then I/We may be liable for such damage or loss.
WHY SO MANY PAGES?
Our Agreements have been formatted to include: l An instruction sheet; l Schedule; and l Full Terms.
Although this seems like a lot, we realise that we have members signing up Storers: l Using sign up pads; l Using self storage industry software; l Electronically; l By customising Word versions of our template Agreements;
The updated Agreements are designed to cater for the many ways our members do business. The updated documents reflect that flexibility. l Members utilising sign up pads are now only required to have one double sided document (Agreement
Schedule). The Full Terms can be printed and made available as an accompaniment at your customer service desk or as a takeaway document; l Members using industry software, it will be business as usual for you; l Members signing up storage electronically can have the Full
Terms embedded into their sign up process for acceptance by their storage customers; l Members customising Word versions of our template Agreements will find the new format easier to customise i.e. add your business logo, trading hours etc.
Some members have previously had available in large print Terms & Condition posters. These Terms & Condition posters can be replaced with larger print booklets, available for purchase from the SSAA product shop. These booklets can remain on your customer service desk.
Whether signing up online or in person, an email can then be sent to the storer providing a copy of their Storage Agreement, Full Terms and Privacy Disclosure Statement for their records. NB: Emailing a copy provides the Facility Owner with a mechanism to check the email address the storer has provided is correct.
We also have available after login in our Member Assets menu, audio versions of the Main Points of each Agreement that you can play to storage customers as you walk them through their Agreement.
SOUTH AUSTRALIAN MEMBERS:
In all states except South Australia, where the uncollected good legislation can’t be excluded, the provisions of the Agreements will now displace the statebased laws that in some cases required facilities to undertake onerous steps prior to disposing of uncollected goods. South Australian members should review the Agreements to refer to the SA specific requirements.
MANAGED STORAGE AGREEMENT:
The Managed Storage Agreement default period will now be 42 days, the same as the Standard Self Storage Agreement.
Why has this changed? It was previously viewed that in the process of undertaking Managed Storage, the Facility Owner would be deemed to be a Warehouseman. However, it’s possible to create (and the updated Managed Storage Agreement does create) a contractual lien which is different from, and a notable improvement upon, the statutory warehouseman’s lien – i.e. Facility Owners can create additional rights under contract, independently of statutory warehouseman’s liens.
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The advantages of contractual liens are: l Facility Owners can specify their own notice period (i.e. 42 days, not 6 months). l Facility Owners can specify the process they must follow – unlike the processes under the state-based statutory warehouseman’s liens, which in addition to a bailment relationship existing, require a number of additional steps that must be taken to create a valid warehouseman’s lien (for example, notifying those people who may have an interest in the bailed goods).
VEHICLE HIRE AGREEMENT & TRAILER HIRE AGREEMENT:
The Vehicle Hire Agreement and Trailer Hire Agreement will now contain the ability to record credit card details. Our lawyers, Hunt & Hunt are recommending that Facility Owners retain the credit card detail sections in the Vehicle Hire Agreement and Trailer Hire Agreement, as without these details the Facility Owner will not have the ability to charge the hirer’s credit card for any fees which are not paid upfront, or amounts that only become apparent after the vehicle / trailer is returned to the facility, such as the costs of repair, or replacement, of the vehicle / trailer. Clause 15 of each of the Vehicle Hire Agreement and Trailer Hire Agreement provides authorisation to Facility Owners to charge these amounts to the credit card details provided.
MOBILE STORAGE AGREEMENT:
The storer will now have an obligation to notify any third party attempting to seize possession of the storage unit of the Facility Operator’s ownership and must give immediate written notice to the Facility Operator of such seizure or attempted seizure.
DECEASED STORERS:
Where a Storer is deceased, for Facilities to protect themselves, Facilities will need to exercise caution in providing access to the Space to persons who don’t have a key or key code.
When a Storer dies, a Facility is not obliged to take further steps to secure the deceased’s stored goods. However, in some instances where a Storer is deceased, a Facility may receive a request from family or friends of the deceased Storer asking that the Facility open the Space for them.
It is important that, when a Storer dies, a Facility does not open the Space for a person to access the Storer’s goods other than the executor or administrator of the deceased’s estate.
Changes to the Agreements in 2018 allowed facilities to deal directly with the Alternate Contact Person (ACP) in the event of the death of a storer. Please note, that that right does not extend past the death of the Storer.
HOW SHOULD I LAUNCH THE NEW AGREEMENTS?
Members will need to download the latest version of the SSAA Australian Agreements. 1. Provide copies to your stationery printer – if utilising printed
Agreement pads; 2. Provide copies to software management providers to update software, noting software systems will not be automatically updated; 3. Provide copies to your IT
Management provider to update your electronic versions; 4. Customise and update for each facility, Agreement word templates. Members should commence using the updated core agreements as soon as possible. All new storers should be signed up on the latest agreements, and where any changes are required by existing storers - such as the provision of a new address, need for another unit – this should instigate the signing of a new updated agreement. When a storer has been storing for a long time and is on an agreement version that is more than six years old, it is worthwhile providing incentives for them to sign a new agreement. Incentives offered will vary depending on your business style and nature and size of your facility.
A NAME CHANGE:
The Manual of Advice and Procedures (MAP) has been renamed Customer Storage Agreement Guidelines (CSA Guidelines)
NEED FURTHER ASSISTANCE?
The CSA Guidelines, available on our Members Only portal is a great place to start if you need further information. As always, legal support is available from the SSAA. Please email your questions to legalsupport@selfstorage.com.au
The SSAA is also reviewing the New Zealand Agreements and Guidelines with our NZ Lawyers, Jackson Russell Lawyers. The SSAA will provide a summary of changes for NZ Members when the updated NZ documents are released. l
The Agreements are made available to all current financial members of SSAA. To protect the intellectual property of the SSAA we request that you do not have the Agreements or Terms and Conditions available for download on your website. This avoids the issue of SSAA IP being used by non-members.
