Which statement accurately describes the Commercial Real Estate Leasing Commission Lien Act?

• A. It applies to all leases including residential.
• B. It does not require disclosure.
• C. It only applies if the broker is a licensed mortgage broker.
• D. It creates a lien against the lessor's net rents and proceeds; must be disclosed; lien release within 7 days after commission payment.

Answer: (D)

The main idea is that this act provides a security interest for commercial real estate brokers by attaching a lien to the landlord’s rents and other proceeds to secure payment of leasing commissions. It applies to commercial leases only, not residential ones, so the notion that it covers all leases isn’t correct. It requires disclosure to the lessor, ensuring the landlord is aware of the lien, and it specifies that the lien must be released within seven days after the commission is paid. It does not hinge on the broker being a mortgage broker, so that detail isn’t relevant. This combination—a lien on net rents and proceeds, mandatory disclosure, and a prompt lien release after payment—best describes the act.