Chapter 12 - § 12.7 • BROKERS' LIENS

• Jurisdiction: Colorado

§ 12.7 • BROKERS' LIENS⁴³⁹

§ 12.7.1—Lien

A real estate broker⁴⁴⁰ has a lien on commercial real estate, i.e., on "any real property other than real property containing one to four residential units,"⁴⁴¹ in the amount of the compensation set forth in the agreement,⁴⁴² if such real estate is listed with the real estate broker under terms of an agreement or is the subject of an agreement, and the real estate broker has provided licensed services that resulted in the procuring of a person or entity who has leased any interest in the commercial real estate in accordance with the agreement.⁴⁴³

§ 12.7.2—Lien Waiver

C.R.S. § 38-22.5-103(2) provides:

The General Assembly intends that nothing in this section is subject to a prospective waiver by either party without consideration acceptable to the parties to the waiver.

§ 12.7.3—Limitation with Respect to Renewal Commissions

Commercial real estate is not subject to a real estate brokers' lien to enforce the payment of a renewal commission⁴⁴⁴ if the property is conveyed to a bona fide purchaser before the recording of a notice of lien.⁴⁴⁵

§ 12.7.4—Mediation

A real estate broker must make a good faith attempt to resolve the nonpayment of the commission thorough mediation. The parties shall jointly appoint an acceptable mediator and shall share equally in the cost of the mediation. The mediator's recommended resolution is not binding unless the parties so agree in writing. Mediation will commence when a written notice requesting mediation is delivered by one party to the other at the party's last known address, and, unless otherwise agreed, will terminate if the entire dispute is not resolved within 30 days thereafter. Mediation does not impair a real estate broker's ability to record a notice of lien if the parties do not agree on a resolution.⁴⁴⁶

§ 12.7.5—Notice of Intent to Record a Notice of Lien

A real estate broker must serve a notice of intent to record a notice of lien upon the owner at least 30 days before recording the notice of lien with the county clerk and recorder of the county in which the commercial real estate is located.⁴⁴⁷ The notice of intent must be served by personal service or by registered or certified mail, return receipt requested, addressed to the last-known address of the owner or the owner's agent, at least 30 days before recording the notice of lien with the county clerk and recorder. If the notice of intent is served upon the owner's agent, a copy of the notice must also be served upon the owner of record by personal service or by registered or certified mail, return receipt requested, addressed to the owner's last known address, at least 30 days before recording of the notice of lien with the county clerk and recorder.⁴⁴⁸

§ 12.7.6—Notice of Lien

The notice of lien must state the name of the real estate broker, the name of the owner, a legal description of the property upon which the lien is being claimed, the amount for which the lien is claimed, and the real estate license number of the real estate broker. The real estate broker must sign the notice of lien and attest that the information contained in the notice is true and accurate to his or her knowledge and belief.⁴⁴⁹

§ 12.7.7—Attachment of Lien

The real estate brokers' lien attaches to an interest in commercial real estate when all of the following conditions are met:

• The real estate broker either: (1) procures a person or entity who leases the property in accordance with the agreement; or (2) has otherwise earned a fee or commission in accordance with the agreement.
• The real estate broker serves a notice of intent to record a notice of lien⁴⁵⁰ upon the owner or the owner's agent.
• The real estate broker makes a good faith attempt to obtain settlement through mediation.⁴⁵¹
• At least 30 days after serving the owner with notice of intent to record a notice of lien, but not more than 90 days after the tenant takes possession

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