33-1071

33-1071. Commercial real estate broker lien;
definition

A. Except as prescribed by subsection C, an employing real estate broker pursuant
to title 32, chapter 20 has a lien against real property for the amount of compensation
that is agreed to be paid to the broker by the owner of the real property for the
broker's services in the lease or rental of the real property. The lien is created only
if all of the following apply:

1. There is a written agreement between the broker and the owner of the real
property that provides for the payment of a commission or other compensation to that
broker for the broker's services in a real estate transaction and that agreement
discloses in the same size type as the majority of the remainder of the agreement above
the portion of the agreement calling for the signature of the owner of the real property
that the failure to pay the agreed upon commission or compensation may give rise to lien
rights as provided by this article.

2. The broker produces a person or entity that is ready, willing and able to lease
or rent the real property on the terms provided in the written agreement between the
broker and the owner of the real property or on terms that are otherwise acceptable to
the owner as evidenced by a written instrument that is signed by the owner.

3. The broker fully complies with sections 33-1072 and 33-1073.

4. All of the conditions for the payment of the commission or other compensation
described in the written agreement have been satisfied.

B. Mechanics' and materialmen's lien rights established pursuant to title 33,
chapter 7, article 6 have priority over the lien rights created by this article.

C. Consensual liens, mortgages and deeds of trust that are recorded before the
recordation of the broker's preliminary notice of intent to lien have priority over the
lien rights created by this article and over the notice of commercial real estate broker
lien recorded pursuant to this article.

D. Real property is not subject to a commercial real estate broker lien pursuant to
this article if either of the following apply:

1. The real property is conveyed to a bona fide purchaser for value before the
recordation of a broker's preliminary notice of intent to lien.

2. It is encumbered by a bona fide lender for value before the recordation of a
broker's preliminary notice of intent to lien.

E. Except as provided in subsection D of this section, the lien rights provided by
this article apply to all commercial real property and do not apply to any transaction
involving either of the following:

1. Residential real property with fewer than five residential units.

2. Real property on which single family mobile home lots, manufactured housing
lots, residences or condominiums are sold unit by unit.

F. For purposes of this article, "real property" or "subject real property" means
the real property interest that is owned by the person who is the party to the agreement
with the broker as prescribed by this section.