Lien upon personal property

  1. Law
  2. Arkansas Code
  3. Property
  4. Mortgages And Liens
  5. Miscellaneous Liens on Personal Property
  6. Principal Broker Real Estate Lien Act
  7. Lien upon personal property

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  1. (a)

    1. (1) A principal broker has a lien in the amount that the owner has agreed to pay the principal broker or real estate firm under a representation agreement upon:

      1. (A) The owner's net proceeds from the disposition of commercial real estate; and

      2. (B) The net rental proceeds from the lease of commercial real estate.

    2. (2) A lien created under subdivision (a)(1) of this section:

      1. (A) Encumbers only personal property;

      2. (B) Does not encumber real property; and

      3. (C) May:

        1. (i) Be asserted only by the principal broker identified in the representation agreement; and

        2. (ii) Not be assigned voluntarily or by operation of law.

  2. (b)

    1. (1) Subject to the requirements of subdivisions (b)(2) and (3) of this section, a lien created under subdivision (a)(1) of this section is:

      1. (A) Effective on the date of the recording of a notice of claim of lien upon proceeds in accordance with subdivision (b)(2) of this section; and

      2. (B) Perfected by recording the notice of claim of lien upon proceeds with the circuit clerk in the county or counties in which the commercial real estate is located.

    2. (2)

      1. (A) A lien created as the result of a disposition of commercial real estate is not effective unless it is recorded before the deed conveying the commercial real estate is recorded in the office of the circuit clerk in the county or counties in which the commercial real estate is located.

      2. (B) On or before the date the deed conveying the commercial real estate is recorded, the principal broker shall deliver a copy of the notice of claim of lien against proceeds to the escrow closing agent closing the disposition of commercial real estate in the manner provided in § 18-48-806 if the identity of the escrow closing agent is known by the principal broker.

    3. (3) A lien created as the result of a lease of commercial real estate is:

      1. (A) Not effective unless it is recorded within ninety (90) days after:

        1. (i) The tenant takes possession of the leased commercial real estate; or

        2. (ii) For a renewal of a lease of commercial real estate, the commencement date of the renewal lease term; and

      2. (B) Null and void unless the principal broker delivers a copy of the notice of claim of lien against proceeds to the owner of the commercial real estate in the manner provided in § 18-48-806 within ten (10) days of recording the principal broker's notice of claim of lien against proceeds.


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