A. Whenever a notice of lien has been filed with the county clerk and a condition occurs that would preclude the broker from receiving compensation under the terms of the written agreement on which the lien is based, the broker shall provide to the owner of record a written release or satisfaction of the lien.

B. An owner, lienee, or other authorized agent may serve written demand on the broker claiming the lien requiring the broker to file suit to enforce the lien. Upon receipt of the written demand, the broker shall file suit within thirty (30) days, or the lien shall be extinguished. Service of such written demand may be made by registered or certified mail, return receipt requested, or by personal service.

C. Whenever a notice of lien has been filed with the county clerk and such claimed commission has been paid to the broker claiming the lien, or where there is failure to institute a suit to enforce the lien within the time provided by this act, the broker shall acknowledge satisfaction or release of the notice of lien in writing, on written demand of the owner within five (5) days after payment or within five (5) days of expiration of the time in which the notice of lien was to be filed.

D. If the broker and the party or parties from whom the commission is claimed agree to alternative dispute resolution, the claim shall be heard and resolved in the forum on which these parties have agreed. The court before which the lien foreclosure proceeding is brought shall retain jurisdiction to enter judgment on the award or other result made or reached on alternative dispute resolution on all parties to the foreclosure. The broker’s notice of lien shall remain of record and the foreclosure proceeding shall be stayed during the pendency of the resolution process.

E. The cost of proceedings brought under this act, including reasonable attorney fees, costs, and prejudgment interest due to the prevailing party, shall be borne by the nonprevailing party or parties. When more than one party is responsible for costs, fees, and prejudgment interest, the costs, fees, and prejudgment interest shall be equitably appointed by the court or tribunal among those responsible parties.

Added by Laws 2006, c. 166, § 7, eff. Nov. 1, 2006.