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90_HB1345eng
770 ILCS 15/10 from Ch. 82, par. 660
Amends the Commercial Real Estate Broker Lien Act.
Provides that a real estate broker's lien in the amount the
broker is due shall attach for the lease of commercial
property upon the signing of the lease and the filing of the
lien with the Recorder or Registrar of Title's office within
90 days of the signing of the lease, which is only effective
upon the date of filing the lien. Effective immediately.
LRB9005078SMdv
HB1345 Engrossed LRB9005078SMdv
1 AN ACT to amend the Commercial Real Estate Broker Lien
2 Act by changing Section 10.
3 Be it enacted by the People of the State of Illinois,
4 represented in the General Assembly:
5 Section 5. The Commercial Real Estate Broker Lien Act is
6 amended by changing Section 10 as follows:
7 (770 ILCS 15/10) (from Ch. 82, par. 660)
8 Sec. 10. Broker's lien.
9 (a) Any broker shall have a lien, upon commercial real
10 estate or any interest in that commercial real estate, in the
11 amount that the broker is due:
12 (1) under a written instrument signed by the owner
13 of an interest in the commercial real estate or the
14 owner's duly authorized agent; or
15 (2) (blank)
16 (3) under a written instrument signed by a
17 prospective buyer or prospective tenant or their
18 respective duly authorized agent as to the purchase,
19 lease, or other conveyance to the buyer or tenant of an
20 interest in the commercial real estate.
21 The lien shall be available to the broker named in the
22 instrument signed by the owner, buyer, or tenant and not to
23 an employee or independent contractor of the broker.
24 (b) The lien under this Act shall attach to the
25 commercial real estate, or any interest in the commercial
26 real estate, upon:
27 (1) the broker being otherwise entitled to a fee or
28 commission under a written instrument signed by the
29 owner, buyer, tenant, or their respective duly authorized
30 agent, as applicable; and
31 (2) except as provided in subsection (c), (d), or
HB1345 Engrossed -2- LRB9005078SMdv
1 (e) the broker recording a notice of lien in the
2 Recorder's Office, or the Office of the Registrar of
3 Titles, of the county in which the commercial real estate
4 is located prior to the actual conveyance or transfer of
5 the commercial real estate against which the broker is
6 claiming a lien. The lien shall attach as of the date of
7 the recording of the notice of lien and does not relate
8 back to the date of the written agreement.
9 (c) Except as provided in subsection (d), when payment
10 to a broker is due in installments, a portion of which is due
11 only after the conveyance or transfer of the commercial real
12 estate, any claim for lien for those payments due after the
13 transfer or conveyance may be recorded at any time subsequent
14 to the transfer or conveyance of the commercial real estate
15 and prior to the date on which the payment is due but shall
16 only be effective as a lien against the commercial real
17 estate to the extent monies are still owed to the transferor
18 by the transferee. A single claim for lien recorded prior to
19 transfer or conveyance of the commercial real estate claiming
20 all monies due under an installment payment agreement shall
21 not be valid or enforceable as it pertains to payments due
22 after the transfer or conveyance. The lien shall attach as
23 of the recording of the notice of lien and not relate back to
24 the date of the written agreement.
25 (d) In the case of a lease the claim for lien must be
26 recorded within 90 days after the tenant takes possession of
27 the leased premises unless written notice of the intended
28 signing of the lease is personally served on the broker
29 entitled to claim a lien at least 10 days prior to the date
30 of the intended signing of the lease in which case the claim
31 for lien must be recorded before the date indicated for the
32 signing of the lease in the notice served on the broker. The
33 lien shall attach as of the recording of the notice of lien
34 and not relate back to the date of the written agreement.
HB1345 Engrossed -3- LRB9005078SMdv
1 (e) If a broker has a written agreement with a
2 prospective buyer or tenant as provided for in paragraph (3)
3 of subsection (a) of this Section, then the lien shall attach
4 upon the prospective buyer or tenant purchasing, leasing, or
5 otherwise accepting a conveyance or transfer of the
6 commercial real estate and the recording of a notice of lien
7 by the broker in the Recorder's Office, or the Office of
8 Registrar of Titles, of the county in which the real
9 property, or any interest in the real property, is located
10 within 90 days after the purchase, lease, or other conveyance
11 or transfer to the buyer or tenant. The lien shall attach to
12 the interest purchased or leased by the buyer or tenant as of
13 the date of the recording of the notice of lien and does not
14 relate back to the date of the written agreement.
15 (f) The broker shall within 10 days of recording its
16 notice of lien mail a copy of the notice of lien to the owner
17 or record of the commercial real estate by registered or
18 certified mail, with return receipt requested, or personally
19 served on the owner of record or his agent. If the lien is
20 recorded within 10 days prior to closing, the broker is not
21 required to mail or personally serve a copy of the notice of
22 lien. Mailing of the copy of the notice of lien is effective
23 if mailed to the address of the commercial real estate that
24 is the subject of the notice of lien. Mailing of the copy of
25 the notice of claim for lien is effective when deposited in
26 the United States mailbox with postage prepaid. The broker's
27 lien shall be unenforceable if mailing of the copy of the
28 notice of lien recording does not occur at the time and in
29 the manner required by this Act.
30 (g) A broker may bring suit to enforce a lien in the
31 Circuit Court in the county where the property is located by
32 filing a complaint and sworn affidavit that the lien has been
33 recorded.
34 The person claiming a lien shall, unless the claim is
HB1345 Engrossed -4- LRB9005078SMdv
1 based upon an option to purchase the commercial real estate,
2 within 2 years after recording the lien, commence proceedings
3 by filing a complaint. Failure to commence proceedings within
4 2 years after recording the lien shall extinguish the lien.
5 No subsequent notice of lien may be given for the same claim
6 nor may that claim be asserted in any proceedings under this
7 Act.
8 A person claiming a lien based upon an option to purchase
9 shall, within 6 months after the transfer or conveyance of
10 the commercial real estate under the exercise of the option
11 to purchase, commence proceedings by filing a complaint.
12 Failure to commence proceedings within this time shall
13 extinguish the lien. No subsequent notice of lien may be
14 given for the same claim nor may that claim be asserted in
15 any proceedings under this Act.
16 A complaint under this Section shall contain a brief
17 statement of the contract or agreements on which the lien is
18 founded, the date when the contract or agreement was made, a
19 description of the services performed, the amount due and
20 unpaid, a description of the property that is subject to the
21 lien, and other facts necessary for a full understanding of
22 the rights of the parties. The plaintiff shall make all
23 interested parties, of whose interest the plaintiff is
24 notified or has knowledge, defendants to the action, and
25 shall issue summons and provide service as in other civil
26 actions. When any defendant resides or has gone out of the
27 State, or on inquiry cannot be found, or is concealed within
28 this State so that process cannot be served on that
29 defendant, the plaintiff shall cause a notice to be given to
30 that defendant, or cause a copy of the complaint to be served
31 upon that defendant, in the manner and upon the same
32 conditions as in other civil actions. Failure of the
33 plaintiff to provide proper summons or notice shall be
34 grounds for judgment against the plaintiff with prejudice.
HB1345 Engrossed -5- LRB9005078SMdv
1 All liens claimed under this Act shall be foreclosed as
2 provided for in the Illinois Mortgage Foreclosure Law.
3 (h) The lien notice shall state the name of the
4 claimant, the name of the owner, a description of the
5 property upon which the lien is being claimed, the amount for
6 which the lien is claimed, and the real estate license number
7 of the broker. The notice of lien shall recite that the
8 information contained in the notice is true and accurate to
9 the knowledge of the signator. The notice of lien shall be
10 signed by the broker or by a person authorized to sign on
11 behalf of the broker and shall be verified.
12 (i) Whenever a claim for lien has been filed with the
13 County Recorder or Registrar of Titles and a condition occurs
14 that would preclude the broker from receiving compensation
15 under the terms of the broker's written agreement, the broker
16 shall provide to the owner of record, within 10 days
17 following demand by the owner of record, a written release or
18 satisfaction of the lien.
19 (j) Upon written demand of the owner, lienee, or other
20 authorized agent, served on the person claiming the lien
21 requiring suit to be commenced to enforce the lien or answer
22 to be filed in a pending suit, a suit shall be commenced or
23 answer filed within 30 days thereafter, or the lien shall be
24 extinguished. Service may be by registered or certified
25 mail, return receipt requested, or by personal service.
26 (k) Whenever a claim for lien has been filed with the
27 County Recorder or Registrar of Titles and is paid, or where
28 there is failure to institute a suit to enforce the lien
29 within the time provided by this Act, the broker shall
30 acknowledge satisfaction or release of the lien, in writing,
31 on written demand of the owner within 5 days after payment or
32 expiration of the time in which to file the lien.
33 (l) The cost of proceedings asserting or defending a
34 broker's claim of lien, including reasonable attorneys' fees,
HB1345 Engrossed -6- LRB9005078SMdv
1 costs, and prejudgment interests due to the prevailing party
2 shall be borne by the nonprevailing party or parties. When
3 more than one party is responsible for costs, fees, and
4 prejudgment interests, the costs, fees, and prejudgment
5 interests shall be equitably apportioned by the court among
6 those responsible parties.
7 (Source: P.A. 87-779; 87-895; 88-354.)
8 Section 99. Effective date. This Act takes effect upon
9 becoming law.