Commercial Lien Law

Sign, sealed, delivered: Florida has a commercial lien law...

On June 20, 2005, Gov. Jeb Bush signed the Florida Association of Realtors’ (FAR) commercial lien legislation (HB 1459) into law. It takes effect Oct. 1, 2005. “Perseverance on the part of many commercial Realtors and FAR leadership got us to this point,” says 2005 FAR President Frank Kowalski, who attended the signing ceremony in Tallahassee with other FAR VIPs. “The fact that Realtors will finally have a way -- other than the courts -- to receive their earned commission from a commercial transaction makes it all worthwhile.” Also in attendance for the signing: Mike Dooley, president-elect; Chuck Bonfiglio, Sr., treasurer; Wendell Davis, secretary; 2004 President Russell Grooms; Commercial Alliance Chairman Steve Moreira; and Jim Morgan and Guy Trusty, former legislative chairmen and long-time champions of commercial lien legislation.

The legislation, sponsored by Don Brown (R-DeFuniak Springs) in the House and Bill Posey (R-Rockledge) in the Senate, was the result of months of discussions with opponents of last year’s bill, namely title insurers and the Real Property, Probate and Trust Law section of the Florida Bar Association. The law specifies that in commercial sales transactions, the lien is placed against the net proceeds of the owner. In a lease transaction, the lien is placed against the property. If the lease agreement is with a tenant, the broker can attach a lien to the tenant’s leasehold interest. In all cases, there are notice provisions, forms and steps specified in the law for accomplishing the lien. Details will be provided in an upcoming issue of the Florida Commercial Alliance newsletter and in the Legislative Section of FAR’s member Web site, Planet Realtor.

Posted by Donald Urschalitz P.A. at June 22, 2005 07:14 PM