Commercial Real Estate Broker's Lien Act

On October 5, 2010, Governor Granholm signed into law Public Act 201 of 2010, known as the "Commercial Real Estate Broker's Lien Act." The act provides authority to real estate brokers to place liens against real property for unpaid commercial real estate commissions and services; it also provides remedies. The lien provision applies only to licensed brokers, and is not available to their employees, agents, subagents, or independent contractors.

Commercial real estate does not include:

● Real estate zoned for single-family use where no building or structure is located

● Real estate where four or fewer residential units are located

● Real estate on which more than four residential units are located, if the units are single-family residential units, including houses, homes, condominiums, or townhouses in a subdivision or condominium project, that are sold, leased, or otherwise conveyed on a unit-by-unit basis

In order for the lien to be placed on real property in favor of the real estate broker, the broker must have a written commission agreement whereby they are entitled to a commission. Additionally, except for subsections 3 to 8 of the Act, they must record a claim of lien before conveyance of the commercial real estate. Liens must be recorded within specified time frames using forms that meet the requirements of 1937 PA 103, MCL 565.201 to 565.203.

For a complete copy of the Act, click on the following link: http://www.legislature.mi.gov/documents/2009-2010/publicact/pdf/2010-PA-0201.pdf