Current through Pa Acts 2024-53, 2024-56 through 2024-111
Section 1056 - Attachment of lien(a) Time and manner of attachment.--A lien under section 3 shall attach to the commercial real estate or any interest in the commercial real estate upon: (1) the broker procuring a person or entity that is ready, willing and able to purchase, lease or otherwise accept a conveyance of the commercial real estate upon the terms set forth in the written agreement with the owner or that is otherwise acceptable to the owner or the owner's agent or the broker being otherwise entitled to a fee or commission under a written agreement that is signed by the owner or the owner's agent; and(2) except as provided in subsection (b), (c) or (d), the broker recording a notice of lien in the office of the prothonotary in the county in which the real property or any interest in the real property is located prior to the actual conveyance or transfer of the commercial real estate against which the broker is claiming a lien.(b) Leases.--In the case of a lease, the notice of lien shall be recorded within 90 days of a default by the owner or successors in interest under the terms of the compensation agreement.(c) Written agreements.--If a broker has a written agreement with a prospective buyer as provided in section 3(2), the lien shall attach upon the recording of a notice of lien by the broker in the office of the prothonotary of the county in which the real property or any interest in the real property is located within 90 days after the purchase or other conveyance or transfer to the buyer.(d) Commercial real estate in more than one county.--Where the commercial real estate is located in more than one county, the lien may be filed in any one or more of the said counties but shall be effective only as to the part of the commercial real estate in the county in which it has been filed.(e) Owner notification.--The broker shall mail a copy of the notice of lien to the owner of the commercial real estate by certified mail.(f) Recording.--A broker shall not be entitled to record a notice of or claim for lien unless, not later than three days prior to the date of conveyance, he gives written notice of the claim for lien to the owner and the prospective buyer that he is entitled to compensation under the terms set forth in the written contract and intends to claim a lien on the commercial real property. The notice shall be served upon the owner and prospective buyer by registered or certified mail. When there are two or more owners or two or more prospective buyers, the notice shall be served upon each owner and each prospective buyer. The notice shall include a statement of the buyer's right to deposit funds in escrow under section 10.(g) Lien unenforceable.--The broker's lien shall be void and unenforceable if recording does not occur at the time and in the manner required by this section.(h) Satisfaction of the lien.--In the event a lien is recorded upon the procurement of a person or entity that is ready, willing and able to purchase, lease or otherwise accept a conveyance of commercial property and the conveyance fails to occur through no fault or condition of the owner, the lien recorded by the broker pursuant to this section shall be satisfied of record by the broker, whereupon the property shall be freed and discharged from such lien. If the broker does not voluntarily satisfy the lien, the owner may demand the filing of a complaint pursuant to section 8(f) or commence an action against the broker seeking as relief the satisfaction or striking of the lien. Upon finding that the lien was recorded in bad faith or the refusal to satisfy the lien was in bad faith, a court shall award the owner the amount of the reasonable expenses, including attorney fees and court costs, incurred by the owner as a result of the recording of the lien or refusal to satisfy the lien. 1998, March 20, P.L. 199, No. 34, § 6, effective in 60 days.