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Arkansas Code Title 18. Property § 18-48-808. Disputed claim--Order to show cause

Current as of March 28, 2024 | Updated by Findlaw Staff

(a)(1) An owner of commercial real estate may dispute a recorded notice of claim of lien against proceeds filed under this subchapter by filing a complaint in the circuit court of the county where the commercial real estate or a portion of the commercial real estate is located for an order directing the principal broker to appear before the court and show cause why a release of the notice of claim of lien against proceeds should not be granted.

(2) If after a hearing, a court determines that the owner is:

(A) Not obligated to pay the principal broker a commission under the terms of a representation agreement, it shall issue an order:

(i) Releasing the notice of claim of lien against proceeds; and

(ii) Awarding costs and a reasonable attorney's fee to the owner; or

(B) Obligated to pay the principal broker a commission under the terms of a representation agreement, the court shall issue an order awarding costs and a reasonable attorney's fee to the licensee.

(b)(1) A principal broker who has a lien on net rental proceeds under § 18-48-803, has recorded a notice of claim of lien against proceeds, and has complied with the requirements of this subchapter may file a complaint in the circuit court of the county where the commercial real estate or a portion of the commercial real estate is located for an order directing the owner to appear before the court and show cause why the relief requested in the complaint should not be granted.

(2) If after a hearing, the court determines that the owner is:

(A) Obligated to pay the principal broker a commission under the terms of a representation agreement, the court shall:

(i) Issue an order enjoining the owner from paying the net rental proceeds from the lease to any party other than the principal broker;

(ii) Order the owner to pay the net rental proceeds to the principal broker; and

(iii) Award a reasonable attorney's fee and expenses to the principal broker; or

(B) Not obligated to pay the licensee a commission under the terms of a representation agreement, the court shall issue an order awarding a reasonable attorney's fee and expenses to the owner.

(c)(1) A complaint authorized by subsection (a) or subsection (b) of this section is barred if not filed within twelve (12) months of the date that the notice of claim of lien against proceeds was recorded.

(2) A proceeding under this section shall not affect other rights and remedies available to the parties under this subchapter or otherwise.

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Cite this article: FindLaw.com - Arkansas Code Title 18. Property § 18-48-808. Disputed claim--Order to show cause - last updated March 28, 2024 | https://codes.findlaw.com/ar/title-18-property/ar-code-sect-18-48-808/

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