2016 -- H 7486

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LC004369

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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: Representatives Keable, Winfield, Johnston, Casey, and Morin

     Date Introduced: February 05, 2016

     Referred To: House Judiciary

     It is enacted by the General Assembly as follows:

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

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

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

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

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

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

applicable provisions of this chapter; or

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

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

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

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

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

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

order of notice.

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

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

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

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

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

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

involved.

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

contract nor otherwise affect, alter or modify the mortgage holder's rights under §34-28-16.1.

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

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

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

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

     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

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

commission bill.

     This act would take effect upon passage.

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LC004369

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