Arizona, by statute, allows a commercial real estate broker in certain limited circumstances to record a lien against the owner’s real property which is the subject of the commission agreement, in order to protect the broker’s entitlement to their commission. See A.R.S. §§ 33-1071 – 1076. The lien rights apply only to commercial real property and residential property with five or more residential units. The lien rights apply only to leasing and rental transactions, not sales. The lien is enforceable by a foreclosure action the same as a mortgage. The statutes identify very specific protocols that need to be followed. For example, in order to take advantage of such lien rights, such lien rights must be referenced in the pertinent brokerage/listing agreement between the broker and the owner of the real property; a preliminary notice of intent to lien must be recorded no later than 15 days before the date the tenant takes possession; and in certain circumstances a notice of lien must be filed within 90 days after the tenant takes possession. The lien expires two years after it is recorded unless an action is brought to enforce the lien before expiration of the two years and a lis pendens is recorded within five days after filing the action. The statute allows the owner to remove the lien by posting a surety bond.
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Welcome to the Snell & Wilmer real estate litigation blog. Check back here often for useful news and information about current topics involving real estate litigation. We hope that you will find the blog both timely and helpful, and we invite you to join the discussion by posting comments about the articles and contacting the authors with your thoughts about the posts.
- Liquidated Damages: Too High and It’s a Penalty. Too Low and You’re Out of Luck.
- The Arizona Supreme Court Confirms that Judgment Liens Attach to Homestead Property
- Don’t Be Lazy with Your Tenders
- Can I Record a Lis Pendens in Arizona if the Lawsuit is filed Another Jurisdiction?
- HOA Foreclosure Excess Sale Proceeds Go to Owner
- Anti-deficiency Statute
- Commercial Real Estate Industry
- Construction and Development
- Guaranty Contracts
- Judgment Liens
- Medical Marijuana
- Real Estate and Bankruptcy
- Real Estate Appraiser Litigation
- Real Estate Broker Litigation
- Real Estate Purchase/Sale Transaction Litigation
- Real Estate Receivers
- Statutes Affecting Real Estate
- Title Insurance