SB401 Summary

• Changes the title from "Real Estate Licensee Lien Act" to "Principal Broker Real Estate Licensee Lien Act" to clarify that principal brokers (rather than individual licensees) hold lien rights.

• Replaces references to individual licensees with principal brokers and real estate firms throughout the statute as the entities holding lien rights on owner proceeds from commercial real estate transactions.

• Modifies lien recording requirements for lease transactions from "before" the tenant takes possession to "within ninety (90) days after" the tenant takes possession or the renewal lease commencement date.

• Updates Internal Revenue Code reference date from January 1, 2005 to January 1, 2011 regarding Section 1031 exchange proceeds held by third parties.

• Clarifies that liens are available only to the principal broker identified in the representation agreement and cannot be assigned voluntarily or by operation of law.