A. Except as prescribed by subsection C, an employing real estate broker pursuant to Title 32, Chapter 20 has a lien against real property for the amount of compensation that is agreed to be paid to the broker by the owner of the real property for the broker’s services in the lease or rental of the real property. The lien is created only if all of the following apply:

Terms Used In Arizona Laws 33-1071

  • Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
  • Lien: A claim against real or personal property in satisfaction of a debt.
  • Person: includes a corporation, company, partnership, firm, association or society, as well as a natural person. See Arizona Laws 1-215
  • Property: includes both real and personal property. See Arizona Laws 1-215
  • Real property: Land, and all immovable fixtures erected on, growing on, or affixed to the land.
  • Remainder: An interest in property that takes effect in the future at a specified time or after the occurrence of some event, such as the death of a life tenant.

1. There is a written agreement between the broker and the owner of the real property that provides for the payment of a commission or other compensation to that broker for the broker’s services in a real estate transaction and that agreement discloses in the same size type as the majority of the remainder of the agreement above the portion of the agreement calling for the signature of the owner of the real property that the failure to pay the agreed upon commission or compensation may give rise to lien rights as provided by this article.

2. The broker produces a person or entity that is ready, willing and able to lease or rent the real property on the terms provided in the written agreement between the broker and the owner of the real property or on terms that are otherwise acceptable to the owner as evidenced by a written instrument that is signed by the owner.

3. The broker fully complies with sections 33-1072 and 33-1073.

4. All of the conditions for the payment of the commission or other compensation described in the written agreement have been satisfied.

B. Mechanics’ and materialmen’s lien rights established pursuant to Title 33, Chapter 7, Article 6 have priority over the lien rights created by this article.

C. Consensual liens, mortgages and deeds of trust that are recorded before the recordation of the broker’s preliminary notice of intent to lien have priority over the lien rights created by this article and over the notice of commercial real estate broker lien recorded pursuant to this article.

D. Real property is not subject to a commercial real estate broker lien pursuant to this article if either of the following apply:

1. The real property is conveyed to a bona fide purchaser for value before the recordation of a broker’s preliminary notice of intent to lien.

2. It is encumbered by a bona fide lender for value before the recordation of a broker’s preliminary notice of intent to lien.

E. Except as provided in subsection D of this section, the lien rights provided by this article apply to all commercial real property and do not apply to any transaction involving either of the following:

1. Residential real property with fewer than five residential units.

2. Real property on which single family mobile home lots, manufactured housing lots, residences or condominiums are sold unit by unit.

F. For purposes of this article, "real property" or "subject real property" means the real property interest that is owned by the person who is the party to the agreement with the broker as prescribed by this section.