Commercial Leasing, Mechanic’s Lien for BIC’s

//Commercial Leasing, Mechanic’s Lien for BIC’s

Commercial Leasing, Mechanic’s Lien for BIC’s

The General Assembly saw that commercial leases give much value to the real estate, much like a tradesman gives value when installing kitchen equipment in a restaurant, etc. So, commercial leasing can enable you to use the mechanic’s lien statute.

https://www.scstatehouse.gov/code/t29c005.php

SECTION 29-5-21. Services of surveyor and real estate licensee as improving real estate; real estate licensee’s liens.

(A) A surveyor who surveys real estate by virtue of an agreement with the owner of such real estate has furnished material for the improvement of real estate within the meaning of Section 29-5-20.

(B)(1) A real estate licensee who, by virtue of a written agreement with the owner, performs professional services for which he is licensed under Title 40 incident to marketing, developing, or improving commercial real estate preparatory to or as a part of a commercial real estate lease or rental transaction involving the commercial real estate, has furnished labor or material for the improvement of commercial real estate within the meaning of Section 29-5-20.

(2) A real estate licensee shall not acquire a lien under this subsection unless:

(a) the owner of the commercial real estate or the owner’s authorized agent authorizes the real estate licensee, under the terms of a written agreement, to lease an interest in the commercial real estate; and

(b) the real estate licensee or the real estate licensee’s affiliated licensees provide licensed services that result, during the term of a written agreement described in item (1) of this subsection, in the procuring of a person or entity that rents or leases the commercial real estate or rents or leases an interest in the commercial real estate upon terms contained in a written agreement described in item (1) of this subsection.

(3) A real estate licensee shall not acquire a lien under this subsection upon residential real estate.

(4) Prior recorded liens shall have priority over a real estate licensee’s lien. A prior recorded lien shall include, without limitation:

(i) a valid mechanic’s lien claim that is recorded subsequent to the real estate licensee’s lien notice of lien but which relates back to a date prior to the recording date of the real estate licensee’s lien notice of lien; and

(ii) prior recorded liens securing revolving credit and future advance of construction loans as described in Section 29-3-50.

HISTORY: 1978 Act No. 465, Section 1; 2006 Act No. 263, Section 1, eff May 2, 2006.

Effect of Amendment

The 2006 amendment designated subsection (A) and added subsection (B) relating to real estate licensees.

Posted by : Byron King on 7/5/18 (This information is only accurate as of 7/5/18. You must contact SCR for updates and changes to this information after 7/5/18 as laws and regulations may change over time. SCR 803-772-5206 or email info at screaltors.org)

By |2018-07-05T08:18:51+00:00July 5th, 2018|Legal FAQs|0 Comments

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