O.C.G.A. § 44-14-605 (2019)
Release or satisfaction of lien on occurrence of condition precluding broker from receiving compensation; suit to enforce lien; when lien invalid; when right to file and record lien dissolved
(a) Whenever a claim for lien has been filed with the superior court and a condition occurs that would preclude the broker from receiving compensation under the terms of the broker’s written agreement, the broker shall provide to the owner of record a written release or satisfaction of the lien. (b) Upon written demand of the owner, lienee, or other authorized agent served on the broker claiming the lien requiring that suit be commenced to enforce the lien or answer be filed in a pending suit, a suit shall be commenced or answer filed in a pending suit, within 90 days thereafter, or the lien shall be extinguished. Service of such demand shall be in the manner required by Chapter 11 of Title 9, the “Georgia Civil Practice Act,” for the service of a summons and complaint. (c) Whenever a claim for lien has been timely filed with the clerk of the superior court and is paid, or where there is failure to institute a suit to enforce the lien within the time provided by this part, the lien shall be invalid and the broker shall acknowledge satisfaction or release of the lien, in writing, on written demand of the owner within 30 days after payment or expiration of the time in which to perfect the lien. This release of the broker shall not be required to invalidate the lien. (d) The broker’s right to file and record a lien provided for in this part shall be dissolved if the owner, purchaser from owner, lender providing a loan secured by commercial real estate, or other holder of lienable interest in commercial real estate shows that: (1) The lien has been waived in writing by the lien claimant or its expressly authorized agent; or (2) The owner or a person at whose instance the brokerage or management services were provided has given a sworn written statement that all such compensation due or to become due has been paid or has been waived in writing by the potential lien claimant; and (3) At the time the sworn written statement was obtained or given as part of a bona fide sale or a loan secured by the commercial real estate, the lien of record had not been previously canceled, dissolved, or expired.
History
Code 1981, § 44-14-605, enacted by Ga. L. 1993, p. 1490, § 1.
ARTICLE 9 LIS PENDENS
Annotations
Law reviews. For note, “Georgia’s Lis Pendens Statutes: Suggested Legislative Changes to Comply with Due Process,” see 4 Ga. St. U.L. Rev. 79 (1988).
For annual survey on real property law, see 61 Mercer L. Rev. 301 (2009).
JUDICIAL DECISIONS Purpose of lis pendens. - Lis pendens, whether it be from the common law as provided in O.C.G.A. § 23-1-18, or by statute (O.C.G.A. Ch. 14, T. 44), has for its purpose the protection of innocent purchasers of real property involved in pending litigation. Patent Scaffolding Co. v. Byers, 220 Ga. 426, 139 S.E.2d 332, 1964 Ga. LEXIS 574 (1964). Lis pendens does not apply in suit for money damages. - At common law and under statutory provisions lis pendens may not be predicated upon an action which seeks merely to recover a money judgment. Watson v. Whatley, 218 Ga. 86, 126 S.E.2d 621, 1962 Ga. LEXIS 434 (1962). Effect of lis pendens. - A lis pendens simply gives notice to prospective purchasers that lawsuit involving realty has been filed. It does not prevent sale of
property, nor is it a lien on property. Aiken v. Citizens & S. Bank, 249 Ga. 481, 291 S.E.2d 717, 1982 Ga. LEXIS 859, cert. denied, 459 U.S. 973, 103 S. Ct. 307, 74 L. Ed. 2d 287, 1982 U.S. LEXIS 4159 (1982). Lis pendens appropriate remedy for improper sale of estate. - Insofar as a resale of property alleged to be sold improperly by the administratrix to an insolvent grantee is concerned, the parties interested in the estate would have an adequate remedy by filing a proper notice of lis pendens. Conner v. Yawn, 200 Ga. 500, 37 S.E.2d 541, 1946 Ga. LEXIS 417 (1946). Due process does not require advance notice of filing of lis pendens. Aiken v. Citizens & S. Bank, 249 Ga. 481, 291 S.E.2d 717, 1982 Ga. LEXIS 859, cert. denied, 459 U.S. 973, 103 S. Ct. 307, 74 L. Ed. 2d 287, 1982 U.S. LEXIS 4159 (1982).
RESEARCH REFERENCES ALR. Doctrine of lis pendens as applied against one who takes deed pending action pursuant to executory contract entered into before action commenced, 93 A.L.R. 404. Necessity of filing notice of lis pendens in suit to contest a will, 159 A.L.R. 386. Propriety of filing of lis pendens in action affecting leasehold interest, 67 A.L.R.3d 747.
Lis pendens in suit to compel stock transfer, 48 A.L.R.4th 731. Lis pendens: grounds for cancellation prior to termination of underlying action, absent claim of delay, 49 A.L.R.4th 242. Lis pendens as applicable to suit for separation or dissolution of marriage, 65 A.L.R.4th 522.