COMMERCIAL REAL ESTATE BROKERS’ LIENS
32.1 Examiner’s Exception for Brokers’ Lien for Commercial Property
Absent (i) proof in affidavit form from both the seller and the purchaser identifying all agreements with commercial real estate brokers for management, sale, lease or other licensed services with respect to the subject property, and (ii) receipt of lien waivers from each identified commercial real estate broker, a title examiner should reflect an excepting for liens arising under the “Commercial Real Estate Broker Lien Act” (O.C.G.A. Section 44-14-600, et seq.).
Comment: “Commercial real estate” is defined a “...any real estate other than real estate containing one to four residential units; real estate on which no buildings or structures are located and which is not zoned for nor available for commercial, multifamily, or retail use; or real estate classified as agricultural for tax assessment purposes. Commercial real estate shall not include single-family residential units such as condominiums, townhomes, mobile homes, or homes in a subdivision when sold, leased, otherwise conveyed on a unit by unit basis even though these units may be part of a larger building or parcel of real estate containing more than four residential units.” O.C.G.A. Section 44-14-601(3).
32.2 Escrow Funds to Dissolve Lien
A claim for lien filed within one year prior to the date of certification of title for which no lien waiver has been obtained, must be handled by an escrow or other procedure if sufficient proceeds from the instant transaction will be available to transferor, whereupon the lien of the broker shall dissolve, without the need for further lien waivers. Comment: See O.C.G.A. Section 44-14-604.