In 1999 the first commercial broker lien law went into effect with lackluster results. The old version of the law required commercial real estate brokers to record a notice of intent to file a lien within a strict time period prior to the closing of the transaction

In 1999 the first commercial broker lien law went into effect with lackluster results. The old version of the law required commercial real estate brokers to record a notice of intent to file a lien within a strict time period prior to the closing of the transaction. This proved to be flawed since the broker would not know that he/she was going to be stiffed until the closing occurs. At that point, it would not be possible for the broker to file a lien for the commission he/she earned. Plus, the person preparing the closing statements likely would not know the broker existed if the seller or buyer intended to stiff the broker. The new law passed recently by the legislature allows the broker to record a "Notice of Interest" with the Register of Deeds at the time the brokers enters into a listing contract with the seller. (Note: this also applies to brokers entering into a leasing or management contract.) Fast forward a few months to when the seller accepts an offer from a buyer and the closing preparation is begun. The title insurance commitment should reflect the Notice of Interest of the broker and will actively work with the broker to ensure payment of a commission or a release of the lien in the event that a commission has not been earned. This new law virtually assures the broker that the person arranging the closing statement knows that the broker exists, which wasn't happening under the old law. A properly recorded Notice of Interest is good for 2 years after its recording and may be rerecorded. The notice form should be made available by the Wisconsin Realtors Association shortly after the governor signs the bill.