779.32 Commission liens.

623 words·~3 min read·/wi/chapter-779/779-32-2

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

(1)Definitions. In this section:

(a)“Broker” means a real estate broker licensed under ch. 452 .

(b)“Commercial real estate” means any real property other than any of the following:

1. Real property containing 8 or fewer dwelling units.

2. Real property that is zoned for residential purposes and that does not contain any buildings or structures.

3. Real property that is zoned for agricultural purposes.

(c)“Financial institution” has the meaning given in s. 214.01

(jn).

(d)“Tenant representation agreement” means an agency agreement between a broker and a person that grants the broker the right to represent the person in the lease of commercial real estate.

(2)Lien. If a broker complies with the notice requirements under sub.

(3)and perfects the lien under sub.

(4), all of the following apply:

(a)If the broker has earned a commission under a written commercial real estate listing contract, the broker has a lien for the unpaid amount of the commission against the commercial real estate, or the interest in commercial real estate, that is listed with the broker under the contract.

(b)If the broker has earned a commission under a written commercial real estate buyer agency agreement or tenant representation agreement, the broker has a lien for the unpaid amount of the commission against the commercial real estate, or the interest in commercial real estate, that is acquired as a result of the agreement.

(c)If the broker has earned compensation from the owner or landlord under a written agreement for the lease or management of commercial real estate or under a tenant representation agreement, the broker has a lien for the unpaid amount of the compensation against the commercial real estate for which the leasing or management services were provided under the agreement.

(2m)Notice of lien rights.

(a)To claim a lien under sub.

(2), the broker shall notify the person who owes the commission or compensation described in sub.

(a),

(b), or

(c)in writing of the right to claim a lien under this section. A broker shall include the notice required under this subsection in the commercial real estate listing contract, commercial real estate buyer agreement, tenant representation agreement, or written agreement for the lease or management of commercial real estate.

(b)The notice required under this subsection shall be in substantially the following form:

NOTICE: A broker has the authority under section 779.32 of the Wisconsin Statutes to file a broker lien for commissions or compensation earned but not paid when due against the commercial real estate, or the interest in the commercial real estate, that is the subject of this agreement.

(3)Notice of interest. In addition to the requirements of sub.

(2m), to claim a lien under sub.

(a)or

(b), the broker shall record a written notice of interest under this section at the office of the register of deeds for the county in which the commercial real estate is located. A notice required under this subsection shall contain the name of each party to the agreement under which the interest is claimed, the date that the agreement was entered into and a description of the commercial real estate that is subject to the lien rights. A notice required under this subsection shall be provided within the following time periods:

(a)In the case of a lien under sub.

(a), at least 30 days before the conveyance of the commercial real estate subject to the listing contract.

(b)In the case of a lien under sub.

(b), at least 30 days before the conveyance of the commercial real estate subject to the buyer agency agreement.