State of Illinois
90th General Assembly
Legislation

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90_HB1345

      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
                                               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
                            -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.
                            -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
                            -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.
                            -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,
                            -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.

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