(a) If a principal broker records a notice of claim of lien against proceeds and knows or learns that he or she is not entitled to receive compensation under the terms of the representation agreement, the principal broker shall record a written release of the notice of claim of lien against proceeds within five (5) days after:
(1) Demand by the owner of the commercial real estate; or
(2) Learning that the principal broker is not entitled to receive compensation under the terms of the representation agreement.
(b) If the amount claimed in the notice of claim of lien has been paid, a lien claimant shall promptly record a satisfaction or release of the notice of claim of lien within five (5) days after receipt of payment of the amount claimed in the notice of claim of lien.
(c) (1) In a disposition of commercial real estate, the escrow closing agent shall pay to the lien claimant the owner's net proceeds up to the amount claimed in the notice of claim of lien against proceeds.
(2) If the amount claimed in the notice of claim of lien is to be fully or partially paid to the lien claimant by the escrow closing agent upon disposition, the lien claimant shall submit a release of his or her notice of claim of lien against proceeds to the escrow closing agent who shall hold the release in escrow pending disposition and payment.
(d) (1) (A) A notice of claim of lien against proceeds recorded under this subchapter shall be released upon the recording of a receipt by the office in which the notice of claim of lien was recorded that shows a deposit of an amount equal to the lien claimed.
(B) The deposit shall be held pending a resolution of amounts due to the licensee and the owner.
(2) If the court determines in an action by the owner to compel delivery of the release by the lien claimant that the delay in providing the release was unjustified, the court shall:
(A) Order the release of the notice of claim of lien; and
(B) Award the owner the costs of the action, including a reasonable attorney's fee.
Section: Previous 18-48-802 18-48-803 18-48-804 18-48-805 18-48-806 18-48-807 18-48-808 18-48-809 NextLast modified: November 15, 2016