This bill establishes a commercial real estate broker's commission lien. (A lien
is an interest in property that secures the payment of a debt and is enforceable in a
civil action.)
Under the bill, a real estate broker that earns a commission in a commercial
real estate transaction may have a lien against the property involved in the transac
tion for the amount of the unpaid commission.
Commercial real estate is defined to be all real estate except for property that
contains 4 or less dwelling units, property that is zoned for residential purposes and
that does not contain buildings or property that is zoned for agricultural purposes.
For further information see the local fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB548, s. 1 3Section 1. 779.32 of the statutes is created to read:
SB548,1,4 4779.32 Commission liens. (1) Definitions. In this section:
SB548,1,55 (a) "Broker" means a real estate broker licensed under ch. 452.
SB548,1,76 (b) "Commercial real estate" means any real property other than any of the fol
7lowing:
SB548,1,88 1. Real property containing 4 or fewer dwelling units.
SB548,2,2
12. Real property that is zoned for residential purposes and that does not contain
2any buildings or structures.
SB548,2,33 3. Real property that is zoned for agricultural purposes.
SB548,2,7 4(2) Lien. (a) A broker who has earned a commission under a commercial real
5estate listing contract shall have a lien for the unpaid amount of the commission
6against the commercial real estate, or the interest in commercial real estate, that is
7listed with the broker under the contract.
SB548,2,118 (b) A broker who has earned a commission under a commercial real estate buy
9er agency agreement shall have a lien for the unpaid amount of the commission
10against the commercial real estate, or the interest in commercial real estate, that is
11acquired as a result of the agreement.
SB548,2,14 12(3) Perfection and notice. (a) A commission lien is perfected when a broker
13files a notice of lien in the office of the register of deeds for the county in which the
14commercial real estate is located.
SB548,2,1615 (b) A notice of lien shall be signed by the broker and shall include all of the fol
16lowing information:
SB548,2,1717 1. The name and license number of the broker.
SB548,2,1918 2. The name of the owner or acquirer of the commercial real estate that is sub
19ject to the lien.
SB548,2,2020 3. The legal description of the commercial real estate that is subject to the lien.
SB548,2,2121 4. The amount of the lien.
SB548,2,2422 (c) A broker shall mail a copy of the notice of lien to the owner or acquirer of
23the commercial real estate that is subject to the lien within 72 hours after the filing
24of the notice under par. (a).
SB548,3,3
1(4) Priority. A commission lien shall have priority over all other liens, except
2tax and special assessment liens, that are filed or recorded after the commission lien
3is perfected.
SB548,3,9 4(5) Escrow account. If a perfected commission lien prevents the closing of the
5commercial real estate transaction from which the lien arose, the parties to the
6transaction shall establish an escrow account from the proceeds of the transaction
7in an amount sufficient to release the commission lien. An escrow account is not re
8quired if all parties to the real estate transaction and the broker having the commis
9sion lien agree to waive the requirement.
SB548,3,11 10(6) Enforcement. Sections 779.09 to 779.12, as they apply to a construction
11lien, apply to a commission lien.
SB548, s. 2 12Section 2. Initial applicability.
SB548,3,15 13(1)  This act first applies to a commercial real estate listing contract or a com
14mercial real estate buyer agency agreement entered into on the effective date of this
15subsection.
SB548, s. 3 16Section 3. Effective date.
SB548,3,18 17(1) This act takes effect on the first day of the 4th month beginning after publi
18cation.
SB548,3,1919 (End)
Loading...
Loading...