Under the bill, a licensed real estate broker may have a lien against commercial
real estate for which the broker provided services. The broker has a lien for
commissions earned under written listing contracts, commissions earned under
written buyer agency agreements and compensation under written agreements for
the lease or management of commercial real estate. In order to obtain a lien, the
broker must provide notices of an intent to claim a lien to the person owing the
commission or compensation. The lien must be perfected by recording it with the
register of deeds in the county where the real estate is located within 6 months after
the later of the following: 1) the date that the commission is earned; 2) the date that
the broker receives notice that he or she has earned a commission or compensation;
or 3) in the case of listing contracts and buyer agency agreements, the date that the
real estate is conveyed. The perfected lien secures all unpaid commissions or
compensation that are due the broker with respect to the liened property, regardless
of whether the commission or compensation was earned at the time the lien was filed.
If an action to enforce the lien is not commenced within 2 years after the date that
the lien is perfected, the lien is extinguished. The bill provides that the commission
lien has priority over other liens on the commercial real estate, except for tax and

special assessment liens and purchase money mortgages, that are filed or recorded
after the commission lien is perfected. The bill applies to all real property, except
property that contains 8 or fewer dwelling units, property zoned for agricultural
purposes and undeveloped property zoned for residential purposes.
Unless the parties agree to binding arbitration, liens created under the bill are
generally enforced in the same manner as construction liens, except that liens are
extinguished if an action to enforce the lien is not commenced within 2 years after
the lien is perfected. As with construction liens, the person against whom a lien is
claimed may receive a satisfaction of lien if the person posts a bond equal to 125%
of the lien amount claimed. The bill also requires the broker to provide a satisfaction
of lien if the parties to the contract or agreement giving rise to the lien agree to
binding arbitration and if the parties to the contract or agreement, other than the
broker, agree to pay all costs of the arbitration.
For further information see the local fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
SB369, s. 1 1Section 1. 779.32 of the statutes is created to read:
SB369,2,2 2779.32 Commission liens. (1) Definitions. In this section:
SB369,2,33 (a) "Broker" means a real estate broker licensed under ch. 452.
SB369,2,54 (b) "Commercial real estate" means any real property other than any of the
5following:
SB369,2,66 1. Real property containing 8 or fewer dwelling units.
SB369,2,87 2. Real property that is zoned for residential purposes and that does not contain
8any buildings or structures.
SB369,2,99 3. Real property that is zoned for agricultural purposes.
SB369,2,1010 (c) "Financial institution" has the meaning given in s. 214.01 (1) (jn).
SB369,2,12 11(2) Lien. If a broker complies with the notice requirements under sub. (3) and
12perfects the lien under sub. (4), all of the following apply:
SB369,3,213 (a) If the broker has earned a commission under a written commercial real
14estate listing contract, the broker has a lien for the unpaid amount of the commission

1against the commercial real estate, or the interest in commercial real estate, that is
2listed with the broker under the contract.
SB369,3,63 (b) If the broker has earned a commission under a written commercial real
4estate buyer agency agreement, the broker has a lien for the unpaid amount of the
5commission against the commercial real estate, or the interest in commercial real
6estate, that is acquired as a result of the agreement.
SB369,3,107 (c) If the broker has earned compensation under a written agreement for the
8lease or management of commercial real estate, the broker has a lien for the unpaid
9amount of the compensation against the commercial real estate for which the leasing
10or management services were provided under the agreement.
SB369,3,14 11(3) Notice of intent to claim lien. A broker has a lien under sub. (2) only if
12the broker provides a written notice of intent to claim a lien under this section to the
13person owing the commission or compensation under sub. (2) within the following
14time periods:
SB369,3,1615 (a) In the case of a lien under sub. (2) (a), at least 72 hours before the conveyance
16of the commercial real estate subject to the listing contract.
SB369,3,1817 (b) In the case of a lien under sub. (2) (b), at least 72 hours before the conveyance
18of the commercial real estate subject to the buyer agency agreement.
SB369,3,2019 (c) In the case of a lien under sub. (2) (c), before the date that the written
20agreement for the lease or management of commercial real estate is entered into.
SB369,3,24 21(4) Perfection of lien. (a) A lien under this section is perfected when a broker
22files a notice of lien in the office of the register of deeds for the county in which the
23commercial real estate is located. The lien must be perfected within 6 months after
24the later of the following:
SB369,4,2
11. In the case of a lien under sub. (2) (a) or (b), the date of the conveyance of the
2real property subject to the listing contract or buyer agency agreement.
SB369,4,63 2. The date that the broker earns a commission or compensation that gives rise
4to a lien under this section. For purposes of this subdivision, a commission or
5compensation is considered earned on the date that payment of it is due under the
6listing contract, the buyer agency agreement or the lease or management agreement.
SB369,4,117 3. The date that the broker receives notice that he or she has earned a
8commission or compensation that gives rise to a lien under this section. For purposes
9of this subdivision, a commission or compensation is considered earned on the date
10that the payment of it is due under the listing contract, the buyer agency agreement
11or the lease or management agreement.
SB369,4,1312 (b) The notice of lien shall be signed by the broker and shall include all of the
13following information:
SB369,4,1414 1. The name and license number of the broker.
SB369,4,1615 2. The name of the owner or acquirer of the commercial real estate that is
16subject to the lien.
SB369,4,1717 3. The legal description of the commercial real estate that is subject to the lien.
SB369,4,1818 4. The amount of the lien at the time the notice is filed.
SB369,4,2119 (c) A broker shall mail a copy of the notice of lien to the owner or acquirer of
20the commercial real estate that is subject to the lien within 72 hours after the filing
21of the notice of lien under par. (a).
SB369,4,2522 (d) A lien that is perfected under this subsection by a broker secures all unpaid
23commissions or compensation that is due that broker with respect to the commercial
24real estate subject to that lien, regardless of whether the commission or
25compensation was earned at the time the lien was filed.
SB369,5,4
1(5) Priority. A lien under this section shall have priority over all other liens
2on the commercial real estate, except tax and special assessment liens and purchase
3money mortgages, that are filed or recorded after the lien under this section is
4perfected.
SB369,5,8 5(7) Enforcement. Unless the parties agree to binding arbitration, sections
6779.08 to 779.12, as they apply to a construction lien, apply to a lien under this
7section, except that for purposes of s. 779.08 (5), the action to foreclose the lien must
8be brought within the time specified in sub. (9).
SB369,5,19 9(8) Satisfaction of lien. Upon the request of any person interested in the real
10estate that is the subject of a lien under this section, the broker shall execute and
11deliver a satisfaction of lien to the interested party, if the parties to the contract or
12agreement giving rise to the lien agree to binding arbitration regarding the disputed
13commission or compensation and if the parties to the contract or agreement, other
14than the broker, agree to pay the all costs of the arbitration. On filing the satisfaction
15with the clerk of circuit court, the clerk of circuit court shall enter satisfaction of the
16claim on the judgment and lien docket. A person who fails to execute and deliver the
17satisfaction or to satisfy the lien on the judgment and lien docket is liable to the
18person requiring the satisfaction for a sum equal to one-half of the sum claimed in
19the lien claim.
SB369,5,22 20(9) Extinguishment of lien. A lien under this section is extinguished if an
21action to enforce the lien is not commenced within 2 years after the lien is perfected
22under sub. (4) (a).
SB369, s. 2 23Section 2. Initial applicability.
SB369,6,224 (1) This act first applies to a commercial real estate listing contract, a
25commercial real estate buyer agency agreement or an agreement for the lease or

1management of commercial real estate entered into on the effective date of this
2subsection.
SB369, s. 3 3Section 3. Effective date.
SB369,6,54 (1) This act takes effect on the first day of the 4th month beginning after
5publication.
SB369,6,66 (End)
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