Owners – Will your property close?
By now many of you may know that before Governor Jennifer Granholm left office she signed into law Senate Bill 610, which permits real estate brokers to assert against "commercial real estate" a lien for unpaid brokerage fees incurred in connection with the sale or lease of that same realty.
In any given day, week, or month you as a tenant or as a property owner should not be impacted by this new legislation. When business operates as it should, ethically and in accordance to the “deal” there is never a call for such a law or the actions it provides.
I have been surprised of late, by seemingly upstanding business men, acting unscrupulously as if they were looking to get a spot in the “Hall of Shame”. It is disturbing, and disappointing.
How will this new law affect you? As a property owner, you will now need to make certain you have a solid listing agreement, or commission agreement, in place. Understand the law and how the lien can be placed. As a tenant or a buyer, know who you are dealing with, and what their agreement is. This could negate the purchase and transfer of your property. Too often, I have seen brokerage commissions held hostage during a last minute dispute between tenant and landlord. Now with this law, you as the tenant may have your occupancy delayed.
It is important to fully understand this new law and how it will impact the entire process, if at all. A key reason you need someone to assist you in the transaction.