As Passed by the Senate                       1            

122nd General Assembly                                             4            

   Regular Session                             Sub. H. B. No. 158  5            

      1997-1998                                                    6            


REPRESENTATIVES SCHULER-CORBIN-TAYLOR-KASPUTIS-OPFER-BATCHELDER-   8            

      OLMAN-O'BRIEN-MOTTLEY-BOYD-TERWILLEGER-JACOBSON-FORD-        9            

       PADGETT-REID-GARCIA-HOUSEHOLDER-KRUPINSKI-THOMPSON-         10           

      METELSKY-WINKLER-TIBERI-MAIER-BRADING-CLANCY-MILLER-         11           

          PRENTISS-WILSON-DAMSCHRODER-SENATORS ZALESKI-            12           

            B. JOHNSON-HOWARD-WATTS-SCHAFRATH-GARDNER              13           


                                                                   15           

                           A   B I L L                                          

             To amend section 317.08 and to enact sections         17           

                1311.85 to 1311.93 of the Revised Code to create   19           

                lien rights for real estate brokers on  certain    20           

                commercial property, to provide for the            21           

                perfection, enforcement, release  or               22           

                satisfaction, and extinguishment of  liens, to     23           

                establish  lien priority, and to permit the        26           

                awarding of attorney's fees and  costs to          27           

                prevailing  parties.                               28           




BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF OHIO:        30           

      Section 1.  That section 317.08 be amended and sections      32           

1311.85, 1311.86, 1311.87, 1311.88, 1311.89, 1311.90, 1311.91,     33           

1311.92, and 1311.93 of the Revised Code be enacted to read as     35           

follows:                                                                        

      Sec. 317.08.  Except as provided in division (F) of this     44           

section, the county recorder shall keep six separate sets of       46           

records as follows:                                                             

      (A)  A record of deeds, in which shall be recorded all       48           

deeds and other instruments of writing for the absolute and        49           

unconditional sale or conveyance of lands, tenements, and          50           

hereditaments; all notices as provided for in sections 5301.47 to  51           

                                                          2      

                                                                 
5301.56 of the Revised Code; all judgments or decrees in actions   52           

brought under section 5303.01 of the Revised Code; all             53           

declarations and bylaws as provided for in Chapter 5311. of the    54           

Revised Code; affidavits as provided for in section 5301.252 of    55           

the Revised Code; all certificates as provided for in section      56           

5311.17 of the Revised Code; all articles dedicating               57           

archaeological preserves accepted by the director of the Ohio      58           

historical society under section 149.52 of the Revised Code; all   59           

articles dedicating nature preserves accepted by the director of   60           

natural resources under section 1517.05 of the Revised Code; all   61           

agreements for the registration of lands as archaeological or      62           

historic landmarks under section 149.51 or 149.55 of the Revised   63           

Code; all conveyances of conservation easements under section      64           

5301.68 of the Revised Code; all instruments or orders described   65           

in division (B)(1)(c)(ii) of section 5301.56 of the Revised Code;  66           

all no further action letters issued under section 3746.11 of the  67           

Revised Code; all covenants not to sue issued under section        68           

3746.12 of the Revised Code; any restrictions on the use of        69           

property identified pursuant to division (C)(3) of section         70           

3746.10 of the Revised Code; and all memoranda of trust, as        71           

described in division (A) of section 5301.255 of the Revised       72           

Code, that describe specific real property;                        73           

      (B)  A record of mortgages, in which shall be recorded all   75           

of the following:                                                  76           

      (1)  All mortgages, including amendments, supplements,       78           

modifications, and extensions of mortgages, or other instruments   79           

of writing by which lands, tenements, or hereditaments are or may  80           

be mortgaged or otherwise conditionally sold, conveyed, affected,  81           

or encumbered;                                                     82           

      (2)  All executory installment contracts for the sale of     84           

land executed after September 29, 1961, that by their terms are    85           

not required to be fully performed by one or more of the parties   86           

to them within one year of the date of the contracts;              87           

      (3)  All options to purchase real estate, including          89           

                                                          3      

                                                                 
supplements, modifications, and amendments of the options, but no  90           

option of that nature shall be recorded if it does not state a     91           

specific day and year of expiration of its validity.               92           

      (C)  A record of powers of attorney, including all           94           

memoranda of trust, as described in division (A) of section        95           

5301.255 of the Revised Code, that do not describe specific real   96           

property;                                                          97           

      (D)  A record of plats, in which shall be recorded all       99           

plats and maps of town lots, of the subdivision of town lots, and  100          

of other divisions or surveys of lands, any center line survey of  101          

a highway located within the county, the plat of which shall be    102          

furnished by the director of transportation or county engineer,    103          

and all drawings as provided for in Chapter 5311. of the Revised   104          

Code;                                                              105          

      (E)  A record of leases, in which shall be recorded all      107          

leases, memoranda of leases, and supplements, modifications, and   108          

amendments of leases and memoranda of leases;                      109          

      (F)  A record of declarations executed pursuant to section   112          

2133.02 of the Revised Code and durable powers of attorney for     114          

health care executed pursuant to section 1337.12 of the Revised    115          

Code.                                                              116          

      All instruments or memoranda of instruments entitled to      118          

record shall be recorded in the proper record in the order in      119          

which they are presented for record.  The recorder may index,      120          

keep, and record in one volume unemployment compensation liens,    121          

internal revenue tax liens and other liens in favor of the United  122          

States as described in division (A) of section 317.09 of the       123          

Revised Code, personal tax liens, mechanic's liens, agricultural   124          

product liens, notices of liens, certificates of satisfaction or   125          

partial release of estate tax liens, discharges of recognizances,  126          

excise and franchise tax liens on corporations, BROKER'S LIENS,    127          

and liens provided for in sections 1513.33, 1513.37, 3752.13,      129          

5111.021, and 5311.18 of the Revised Code.                         131          

      The recording of an option to purchase real estate,          133          

                                                          4      

                                                                 
including any supplement, modification, and amendment of the       134          

option, under this section shall serve as notice to any purchaser  135          

of an interest in the real estate covered by the option only       136          

during the period of the validity of the option as stated in the   137          

option.                                                            138          

      (G)  In lieu of keeping the six separate sets of records     141          

required in divisions (A) to (F) of this section and the records   143          

required in division (H) of this section, a county recorder may    144          

record all the instruments required to be recorded by this         145          

section in two separate sets of record books.  One set shall be    146          

called the "official records" and shall contain the instruments    147          

listed in divisions (A), (B), (C), (E), (F), and (H) of this       149          

section.  The second set of records shall contain the instruments  150          

listed in division (D) of this section.                            151          

      (H)  Except as provided in division (G) of this section,     154          

the county recorder shall keep a separate set of records                        

containing all corrupt activity lien notices filed with the        155          

recorder pursuant to section 2923.36 of the Revised Code and a     156          

separate set of records containing all medicaid fraud lien         157          

notices filed with the recorder pursuant to section 2933.75 of     158          

the Revised Code.                                                  159          

      Sec. 1311.85.  AS USED IN SECTIONS 1311.85 TO 1311.93 OF     161          

THE REVISED CODE:                                                               

      (A)  "BROKER" MEANS AN INDIVIDUAL, PARTNERSHIP,              163          

CORPORATION, OR ASSOCIATION LICENSED AS A REAL ESTATE BROKER       164          

PURSUANT TO CHAPTER 4735. OF THE REVISED CODE.                     165          

      (B)  "COMMERCIAL REAL ESTATE" MEANS ANY PARCEL OF REAL       167          

ESTATE IN THIS STATE OTHER THAN REAL ESTATE CONTAINING ONE TO      169          

FOUR RESIDENTIAL UNITS.  "COMMERCIAL REAL ESTATE" DOES NOT         170          

INCLUDE SINGLE-FAMILY RESIDENTIAL UNITS SUCH AS CONDOMINIUMS,      171          

TOWNHOUSES, MANUFACTURED HOUSING, OR HOMES IN A SUBDIVISION WHEN   172          

SOLD, LEASED, OR OTHERWISE CONVEYED ON A UNIT-BY-UNIT BASIS, EVEN  173          

THOUGH THESE UNITS MAY BE A PART OF A LARGER BUILDING OR PARCEL    174          

OF REAL ESTATE CONTAINING MORE THAN FOUR RESIDENTIAL UNITS.        176          

                                                          5      

                                                                 
"COMMERCIAL REAL ESTATE" ALSO DOES NOT INCLUDE REAL ESTATE OWNED                

BY A PUBLIC AUTHORITY AS DEFINED IN SECTION 1311.25 OF THE         178          

REVISED CODE.                                                      179          

      (C)  "LIEN PROPERTY" MEANS ANY INTEREST IN COMMERCIAL REAL   181          

ESTATE AGAINST WHICH A BROKER HAS A LIEN PURSUANT TO SECTIONS      183          

1311.85 TO 1311.93 OF THE REVISED CODE.                                         

      (D)  "OWNER" MEANS A PERSON WHO HAS A LEGAL OR EQUITABLE     185          

INTEREST IN LIEN PROPERTY AND WHO ENTERS INTO A WRITTEN CONTRACT   187          

WITH A BROKER FOR SERVICES RELATED TO SELLING, LEASING, OR         188          

CONVEYING ANY INTEREST IN THE LIEN PROPERTY.                                    

      Sec. 1311.86.  (A)  ANY BROKER THAT ENTERS INTO A WRITTEN    190          

CONTRACT FOR SERVICES RELATED TO SELLING, LEASING, OR CONVEYING    191          

ANY INTEREST IN COMMERCIAL REAL ESTATE HAS A LIEN ON THAT          192          

COMMERCIAL REAL ESTATE.  THE LIEN IS EFFECTIVE ONLY IF THE         193          

CONTRACT FOR SERVICES IS IN WRITING AND IS SIGNED BY THE BROKER    194          

OR THE BROKER'S AGENT AND THE OWNER OF THE LIEN PROPERTY OR THE    195          

OWNER'S AGENT.                                                                  

      (B)(1)  ONLY THE BROKER NAMED IN THE CONTRACT HAS A LIEN     197          

PURSUANT TO THIS SECTION AND A LIEN IS NOT AVAILABLE TO ANY        198          

EMPLOYEE OR INDEPENDENT CONTRACTOR OF THE BROKER.                  199          

      (2)  THE AMOUNT OF THE LIEN IS LIMITED TO THE AMOUNT DUE TO  201          

THE BROKER PURSUANT TO THE CONTRACT.  IF THE AMOUNT DUE TO THE     202          

BROKER IS PAYABLE IN INSTALLMENTS, A PORTION OF WHICH IS DUE       203          

AFTER CONVEYANCE, THE AMOUNT OF THE LIEN IS LIMITED TO THE AMOUNT  204          

DUE TO THE BROKER PRIOR TO OR UPON CONVEYANCE.                     205          

      (3)  THE LIEN IS EFFECTIVE ONLY AGAINST THE INTEREST IN      207          

REAL ESTATE THAT IS THE SUBJECT OF THE CONTRACT.                   208          

      Sec. 1311.87.  (A)(1)  A LIEN ESTABLISHED PURSUANT TO        210          

SECTION 1311.86 OF THE REVISED CODE IS PERFECTED WHEN BOTH OF THE  213          

FOLLOWING HAVE OCCURRED:                                                        

      (a)  THE BROKER IS ENTITLED TO A FEE OR COMMISSION UNDER     215          

THE CONTRACT.                                                      216          

      (b)  THE BROKER HAS MET THE REQUIREMENTS OF DIVISION (B) OF  219          

THIS SECTION.                                                                   

                                                          6      

                                                                 
      (2)  THE LIEN IS PERFECTED AS OF THE DATE THE REQUIREMENTS   221          

OF DIVISION (A)(1) OF THIS SECTION ARE MET AND DOES NOT RELATE     222          

BACK TO AN EARLIER DATE.                                           223          

      (B)  TO PERFECT A LIEN PURSUANT TO DIVISION (A)(1) OF THIS   226          

SECTION, A BROKER SHALL COMPLY WITH ALL OF THE FOLLOWING:          228          

      (1)  THE BROKER SHALL RECORD A LIEN AFFIDAVIT IN THE COUNTY  230          

RECORDER'S OFFICE OF THE COUNTY IN WHICH THE REAL ESTATE IS        231          

LOCATED.  THE RECORDER SHALL RECORD ON THE AFFIDAVIT THE DATE AND  232          

PRECISE TIME THE AFFIDAVIT WAS PRESENTED FOR RECORD, AND SHALL     233          

RECORD THE AFFIDAVIT.  THE RECORDER SHALL CHARGE AND COLLECT THE   234          

FEES SET FORTH IN SECTION 317.32 OF THE REVISED CODE FOR THE       236          

RECORDER'S SERVICES.                                                            

      (2)(a)  THE LIEN AFFIDAVIT SHALL INCLUDE THE NAME OF THE     238          

BROKER WHO HAS THE LIEN, THE NAME OF THE OWNER OF THE LIEN         240          

PROPERTY, A LEGAL DESCRIPTION OF THE LIEN PROPERTY, THE AMOUNT     241          

FOR WHICH THE LIEN IS CLAIMED, THE DATE AND A SUMMARY OF THE       242          

WRITTEN CONTRACT ON WHICH THE LIEN IS BASED, AND THE REAL ESTATE   243          

LICENSE NUMBER OF THE BROKER.  THE LIEN AFFIDAVIT SHALL STATE      244          

THAT THE INFORMATION CONTAINED IN THE AFFIDAVIT IS TRUE AND        245          

ACCURATE TO THE KNOWLEDGE OF THE SIGNATOR, BE SIGNED BY THE        246          

BROKER OR THE BROKER'S AGENT, AND BE VERIFIED.                                  

      (b)  FOR PURPOSES OF DIVISION (B)(2)(a)  OF THIS SECTION, A  249          

DESCRIPTION THAT IS SUFFICIENT TO DESCRIBE THE LIEN PROPERTY FOR   250          

THE PURPOSE OF CONVEYANCE, OR IS CONTAINED IN THE INSTRUMENT BY    251          

WHICH THE OWNER TOOK TITLE, IS A LEGAL DESCRIPTION.                253          

      (3)  A LIEN AFFIDAVIT BASED ON THE CONVEYANCE OF LIEN        255          

PROPERTY SHALL BE RECORDED PRIOR TO THE CONVEYANCE OF THE          257          

PROPERTY.                                                                       

      (4)(a)  A LIEN AFFIDAVIT BASED ON A LEASE OF LIEN PROPERTY   259          

SHALL BE RECORDED WITHIN THIRTY DAYS AFTER THE FIRST RENTAL        262          

PAYMENT IS DUE UNLESS THE OWNER OF THE LIEN PROPERTY HAS PROVIDED  263          

NOTICE PURSUANT TO DIVISION (B)(4)(b) OF THIS SECTION.             264          

      (b)  IF THE OWNER HAS PROVIDED THE BROKER WITH WRITTEN       266          

NOTICE OF THE INTENDED DATE FOR SIGNING THE LEASE, WHICH IS        268          

                                                          7      

                                                                 
SERVED ON THE BROKER NO LATER THAN TEN DAYS PRIOR TO THE INTENDED  269          

DATE OF SIGNING THE LEASE EITHER BY PERSONAL DELIVERY OR BY        272          

CERTIFIED MAIL, RETURN RECEIPT REQUESTED, THE BROKER SHALL RECORD               

THE LIEN AFFIDAVIT BEFORE THAT DATE.                               273          

      (5)  ON THE DAY THE LIEN AFFIDAVIT IS RECORDED, THE BROKER   275          

SHALL PROVIDE A COPY OF THE LIEN AFFIDAVIT TO THE OWNER OF THE     276          

LIEN PROPERTY AND, WHERE A CONTRACT FOR THE SALE OR OTHER          279          

CONVEYANCE OF THE LIEN PROPERTY HAS BEEN ENTERED INTO, TO THE                   

PROSPECTIVE TRANSFEREE, WHERE KNOWN, EITHER BY PERSONAL DELIVERY   281          

OR BY CERTIFIED MAIL, RETURN RECEIPT REQUESTED.                                 

      Sec. 1311.88.  (A)  TO COMMENCE PROCEEDINGS TO ENFORCE A     283          

LIEN, A BROKER SHALL COMPLY WITH ALL OF THE FOLLOWING:             284          

      (1)  THE BROKER SHALL FILE A COMPLAINT IN THE COMMON PLEAS   287          

COURT IN THE COUNTY WHERE THE LIEN PROPERTY IS LOCATED.            288          

      (2)(a)  THE COMPLAINT SHALL BE FILED WITHIN ONE YEAR         290          

FOLLOWING THE RECORDING OF THE LIEN AFFIDAVIT AS PROVIDED IN       291          

DIVISION (B) OF SECTION 1311.87 OF THE REVISED CODE.               292          

      (b)  FAILURE TO FILE A COMPLAINT WITHIN THE TIME SPECIFIED   294          

IN THIS DIVISION EXTINGUISHES THE LIEN, IN WHICH CASE NO           295          

SUBSEQUENT LIEN AFFIDAVIT MAY BE RECORDED FOR THE SAME CLAIM AND   297          

THE CLAIM MAY NOT BE ASSERTED IN ANY PROCEEDING UNDER THIS         298          

SECTION.                                                                        

      (3)  A COMPLAINT SHALL IDENTIFY THE CONTRACT UPON WHICH THE  300          

LIEN IS BASED AND THE DATE OF THE CONTRACT, DESCRIBE THE SERVICES  301          

PERFORMED BY THE BROKER PURSUANT TO THE CONTRACT, SPECIFY THE      302          

UNPAID AMOUNTS DUE TO THE BROKER PURSUANT TO THE CONTRACT,         303          

SPECIFY THE ADDRESS OF THE LIEN PROPERTY, AND HAVE A COPY OF THE   306          

CONTRACT ATTACHED.                                                              

      (4)  THE BROKER SHALL NAME AS DEFENDANTS IN THE COMPLAINT    308          

ALL PARTIES THAT HAVE A LEGAL OR EQUITABLE INTEREST IN THE LIEN    309          

PROPERTY  OF WHOM THE BROKER HAS KNOWLEDGE.                        310          

      (B)(1)  THE OWNER MAY DEMAND THAT THE BROKER COMMENCE A      313          

SUIT TO ENFORCE A BROKER'S LIEN BY SERVING A WRITTEN NOTICE OF                  

DEMAND ON THE BROKER BY PERSONAL DELIVERY OR BY CERTIFIED MAIL,    316          

                                                          8      

                                                                 
RETURN RECEIPT REQUESTED.                                                       

      (2)  IF THE BROKER DOES NOT COMMENCE THE SUIT OR FILE THE    318          

ANSWER DEMANDED WITHIN TWENTY-EIGHT DAYS AFTER RECEIPT OF THE      319          

NOTICE OF DEMAND, THE LIEN IS EXTINGUISHED.                        320          

      (C)  IN AN ACTION BASED ON A BROKER'S LIEN, A COURT MAY      322          

ASSESS THE NONPREVAILING PARTIES WITH COSTS AND REASONABLE         324          

ATTORNEY'S FEES INCURRED BY THE PREVAILING PARTIES.  THE COURT     325          

SHALL EQUITABLY APPORTION THE ASSESSED COSTS AND ATTORNEY'S FEES   326          

AMONG ALL RESPONSIBLE NONPREVAILING PARTIES.                       327          

      Sec. 1311.89.  (A)  ALL LIENS CLAIMED UNDER SECTIONS         329          

1311.85 TO 1311.93 OF THE REVISED CODE SHALL BE SUBJECT TO         331          

SECTION 2323.07 OF THE REVISED CODE UNLESS THE PARTIES AGREE TO    332          

PROCEED PURSUANT TO DIVISION (B) OF THIS SECTION.                  333          

      (B)  IF THE BROKER AND OWNER AGREE TO ALTERNATIVE DISPUTE    335          

RESOLUTION (ADR), THE CLAIM SHALL BE HEARD AND RESOLVED IN THE     336          

AGREED UPON ADR FORUM.  THE COURT SHALL RETAIN JURISDICTION TO     337          

ENTER AND ENFORCE THE AWARD OR OTHER RESULT OF ADR ON ALL          338          

INTERESTED PARTIES TO THE FORECLOSURE.                             339          

      Sec. 1311.90.  (A)  A BROKER SHALL RECORD A WRITTEN RELEASE  341          

OR SATISFACTION OF THE BROKER'S LIEN IN THE COUNTY RECORDER'S      342          

OFFICE OF THE COUNTY IN WHICH THE LIEN WAS RECORDED  WITHIN TEN    344          

DAYS AFTER ANY OF THE FOLLOWING:                                                

      (1)  MONEYS IN AN AMOUNT SUFFICIENT TO RELEASE THE BROKER'S  346          

LIEN ESTABLISHED PURSUANT TO SECTION 1311.86 OF THE REVISED CODE   347          

HAVE BEEN DEPOSITED IN AN ESCROW ACCOUNT ESTABLISHED PURSUANT TO   348          

SECTION 1311.92 OF THE REVISED CODE.                                            

      (2)  THE OWNER SATISFIES THE CLAIM UPON WHICH THE BROKER'S   350          

LIEN IS BASED.                                                                  

      (3)  THE BROKER FAILS TO FILE A CLAIM TO ENFORCE A LIEN      352          

WITHIN THE TIME SPECIFIED IN SECTION 1311.88 OF THE REVISED CODE.  354          

      (4)  THE CLAIM UPON WHICH THE BROKER'S LIEN IS BASED HAS     356          

BEEN RESOLVED BY A WRITTEN AGREEMENT OF THE BROKER AND OWNER, BY   358          

A COURT, OR BY ANY PROCESS AGREED TO BY THE BROKER AND OWNER.      359          

      (B)  ON THE DAY THE RELEASE OR SATISFACTION IS RECORDED,     361          

                                                          9      

                                                                 
THE BROKER SHALL PROVIDE THE OWNER WITH A COPY OF THE RELEASE OR   363          

SATISFACTION BY PERSONAL DELIVERY OR BY CERTIFIED MAIL, RETURN     365          

RECEIPT REQUESTED.                                                              

      Sec. 1311.91.  ALL VALID MECHANIC'S LIENS, ARISING PURSUANT  367          

TO AND PERFECTED IN ACCORDANCE WITH CHAPTER 1311. OF THE REVISED   368          

CODE, AND ALL PRIOR RECORDED LIENS AND MORTGAGES HAVE PRIORITY     369          

OVER A BROKER'S LIEN PERFECTED PURSUANT TO SECTION 1311.87 OF THE  370          

REVISED CODE.                                                                   

      Sec. 1311.92.  (A)  EXCEPT AS PROVIDED IN DIVISION (D) OF    372          

THIS SECTION, TO ENABLE A TRANSFER OF LIEN PROPERTY TO CLOSE WHEN  373          

A BROKER'S PERFECTED LIEN MAY OTHERWISE PREVENT THE CLOSING, A     375          

SEPARATE ESCROW ACCOUNT SHALL BE ESTABLISHED BY THE OWNER INTO     376          

WHICH MONEYS FROM THE PROCEEDS OF THE CLOSING SHALL BE DEPOSITED   378          

IN AN AMOUNT SUFFICIENT TO RELEASE THE BROKER'S LIEN.  THE MONEYS  379          

SHALL BE HELD IN ESCROW AND SHALL ONLY BE RELEASED AS ORDERED BY   380          

A COURT OF COMPETENT JURISDICTION, OR AS DIRECTED BY AGREEMENT OF  381          

THE BROKER AND OWNER OR BY ANY PROCESS AGREED TO BY THE BROKER     383          

AND OWNER.                                                                      

      (B)  AN OWNER MAY NOT REFUSE TO CLOSE A TRANSFER OF LIEN     385          

PROPERTY BECAUSE OF THE REQUIREMENT TO ESTABLISH AN ESCROW         387          

ACCOUNT UNDER DIVISION (A) OF THIS SECTION.  A PROSPECTIVE         388          

TRANSFEREE OF LIEN PROPERTY SHALL NOT REFUSE TO CLOSE THE          389          

TRANSFER OF THE LIEN PROPERTY SOLELY BECAUSE THE BROKER RECORDED   390          

A LIEN AFFIDAVIT UNDER THIS SECTION, IF ALL OF THE FOLLOWING HAVE  391          

OCCURRED:                                                                       

      (1)  THE OWNER HAS ESTABLISHED THE ESCROW ACCOUNT REQUIRED   393          

BY DIVISION (A) OF THIS SECTION;                                   394          

      (2)  THE PROSPECTIVE TRANSFEREE HAS RECEIVED FROM THE        396          

ESCROW AGENT FOR THE ESCROW ACCOUNT REQUIRED BY DIVISION (A) OF    397          

THIS SECTION A VERIFIED STATEMENT THAT THE ESCROW ACCOUNT HAS      398          

BEEN ESTABLISHED.                                                               

      (C)  WHEN FUNDS HAVE BEEN PLACED IN ESCROW PURSUANT TO       400          

DIVISION (A) OF THIS SECTION, THE BROKER CLAIMING A BROKER'S LIEN  401          

UNDER THIS SECTION HAS AN EQUITABLE LIEN ON THE ESCROWED FUNDS,    404          

                                                          10     

                                                                 
AND THE LIEN RECORDED ON THE LIEN PROPERTY SHALL BE EXTINGUISHED   405          

AS A MATTER OF LAW.                                                             

      (D)  THE BROKER AND OWNER ARE NOT REQUIRED TO FOLLOW THE     407          

ESCROW PROCEDURES DESCRIBED IN THIS SECTION IF EITHER OF THE       408          

FOLLOWING APPLIES:                                                 409          

      (1)  AN ALTERNATIVE PROCEDURE IS AVAILABLE THAT WOULD ALLOW  411          

THE TRANSFER OF LIEN PROPERTY TO CLOSE AND THAT PROCEDURE IS       412          

ACCEPTABLE TO THE BROKER AND PROSPECTIVE TRANSFEREE.               413          

      (2)  THE PROCEEDS FROM THE TRANSFER OF LIEN PROPERTY WOULD   415          

BE INSUFFICIENT TO RELEASE ALL LIENS, INCLUDING THE BROKER'S       417          

LIEN, THAT ARE CLAIMED AGAINST THE LIEN PROPERTY.                  418          

      Sec. 1311.93.  ANY BROKER THAT ASSERTS OR RECORDS A          420          

SPURIOUS OR MATERIALLY INACCURATE BROKER'S LIEN UNDER THIS         421          

SECTION OR FAILS TO RELEASE OR ACKNOWLEDGE RELEASE OR              422          

SATISFACTION OF A BROKER'S LIEN IN COMPLIANCE WITH THIS SECTION,   423          

IS LIABLE FOR DAMAGES INCURRED BY ANY PERSON WHO HAS A LEGAL OR    424          

EQUITABLE INTEREST IN THE LIEN PROPERTY.                           426          

      Section 2.  That existing section 317.08 of the Revised      428          

Code is hereby repealed.                                           429