Bill Summary for H 174 (2011-2012)

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Summary date: 

Jun 6 2011
S.L. 2011-165

Bill Information:

View NCGA Bill Details2011-2012 Session
House Bill 174 (Public) Filed Wednesday, February 23, 2011
TO ENACT THE COMMERCIAL REAL ESTATE BROKER LIEN ACT.
Intro. by McCormick, Gibson, Daughtry.

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Bill summary

House committee substitute makes the following changes to 2nd edition. Amends proposed GS 44A-24.3 to clarify under what circumstances a broker will have a lien upon commercial real estate. Provides that a lien under the statute is available only against the commercial real estate which is the subject of the written agreement for broker services. Provides lien process when payment of commission to a broker is due in installments, a portion of which is due only after the conveyance or transfer of the commercial real estate.
Amends proposed GS 44A-24.4 to clarify when a lien attaches to commercial real estate and provides when notice is timely. Requires that filing for the lien occur in the office of the clerk of superior court (previously register of deeds).
Amends proposed GS 44-24.7 to require the lien claimant file proof of service with the clerk of superior court. Makes similar change to proposed GS 44A-24.10. Amends GS 44-24.8 to require a lien claimant to commence proceedings within 18 months after filing the lien, and failure to do so will extinguish the lien. If the claim is based upon an option to purchase the commercial real estate, the lien claimant must commence proceedings within one year of the option to purchase being exercised. Provides that a lender must not be made a party to any suit to enforce a lien unless the lender willfully or intentionally caused the nonpayment of the commission giving rise to the lien. Amends proposed GS 44A-24.11, requiring the claimant to acknowledge satisfaction or release of the lien in writing upon written demand within 30 days (was, within 60 days).
Deletes proposed GS 44A-24.13, concerning the use of escrow accounts. Enacts new 44A-24.13 providing for, and detailing instances for discharge of a lien on commercial real estate.
Enacts new GS 44A-24.14 to provide that any claim of lien on real property or funds, as described in this act, are superior in all respects to other liens filed under new Part 4, regardless of the effective date of the competing liens, and survive any judgment awarding a lien under Part 4. Provides that no claimant filing a lien pursuant to Part 4 will be entitled to participate in any pro rata distributions to claimants proceeding under GS 44A-21.
Enacts new GS 93A-13 requiring that contracts for broker’s services be in writing and signed by the party to be charged in order to bring a claim for recovery under a broker services agreement.
Makes other organizational, technical, conforming, and clarifying changes. Clarifies that the act is effective October 1, 2011, and applies to written agreements signed by the owner of commercial real estate or the owner’s duly authorized agent on or after that date.