What does the Commercial Real Estate Leasing Commission Lien Act provide for?

• A. A lien against the buyer's deposit.
• B. A lien against the lessee's personal assets.
• C. A lien against the lessor's net rents and proceeds upon performance by the broker under a written leasing contract; must be disclosed; lien release within 7 days after receipt of commission payment.
• D. No lien rights for leasing.

Answer: (C)

The main idea here is that this act gives a broker who earns a leasing commission a security interest in the landlord’s income stream. When a broker has performed under a written leasing contract, the broker can place a lien on the landlord’s net rents and other lease-related proceeds. The law requires that this lien be disclosed to the parties involved, ensuring everyone knows there’s an encumbrance on the landlord’s rent receipts. Importantly, once the broker is paid the commission, the lien must be released within seven days. This framework protects the broker’s right to collect for the services rendered while limiting the impact on the landlord by providing a prompt release once payment occurs. The lien does not attach to the buyer’s deposit or the lessee’s personal assets, and the statute provides leasing lien rights rather than a denial of any lien rights.