2016 -- S 2503

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LC004263

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2016

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A N   A C T

RELATING TO PROPERTY -- COMMERCIAL REAL ESTATE BROKEN LIEN

     

     Introduced By: Senators McCaffrey, and Lombardi

     Date Introduced: February 25, 2016

     Referred To: Senate Judiciary

     It is enacted by the General Assembly as follows:

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     SECTION 1. Chapter 34-49 of the General Laws entitled "Commercial Real Estate

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Broker Lien Act" is hereby amended by adding thereto the following sections:

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     34-49-6. Dismissal of complaint for other cause. -- (a) If any person of interest,

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including, but not limited to, the owner, claims that:

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     (1) The notice of lien filed by a real estate broker in the land evidence records that the

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commercial real estate broker lien has not been filed or recorded in accordance with the

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applicable provisions of this chapter; or

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     (2) That for any other reason a claimed real estate broker lien is invalid by reason or

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failure to comply with the provisions of this chapter, then in such event, the person of interest

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may apply forthwith to the superior court in the county where the land lies, for an order to show

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cause why the lien in question is invalid or otherwise void, that the basis of the lien is without

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probability of a judgment rendered in favor of the lienor. A mortgage holder or servicer is not a

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necessary party under this section and shall not be named as a party in any such application or

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order of notice.

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     (b) An order of notice to appear and show cause why the relief demanded in the

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complaint should not be granted shall be served upon the necessary parties no later than one week

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prior to the date of the scheduled hearing. If the necessary parties cannot be found, such service

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may be made as the court shall direct. The application shall be made upon a verified complaint

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accompanied by other written proof of facts upon which the application is made. Upon granting

 

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or denying the application, the court shall enter an order or judgment as applicable on the matter

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involved.

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     (c) Nothing herein shall affect the validity of, or otherwise modify or alter, the mortgage

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contract nor otherwise affect, alter or modify the mortgage holder's rights under ยง34-28-16.1.

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     34-49-7. Severability. -- If any provision of this chapter or the application thereof to any

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person or circumstances is held invalid, such invalidity shall not affect other provisions or

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applications of the chapter, which can be given effect without the invalid provision or

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applications, and to this end the provisions of this chapter are declared to be severable.

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     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

RELATING TO PROPERTY -- COMMERCIAL REAL ESTATE BROKEN LIEN

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     This act would create an avenue to challenge the legal viability of a recorded commercial

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real estate broker's notice of lien for their unpaid and owing commercial real estate sales

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commission bill.

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     This act would take effect upon passage.

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