§ 35-11-453 — Escrow Accounts

Alabama § 35-11-453

• Jurisdiction: Alabama
• Title 35: Property
• Ch. 11: Liens
• Art. 5: Liens of Particular Persons or Classes of Persons
• Div. 19: Broker Compensation for Sale, Lease, or Conveyance of Commercial Real Estate

Text

Except as otherwise provided in this section, whenever a notice of lien has been given or recorded, an escrow account may be, but is not required to be, established in an amount sufficient to release the claim for lien. These moneys shall be held in escrow by the closing agent or an independent escrow agent until the parties’ rights to the escrowed moneys have been determined by written agreement of the parties, by a final court order, or by any other process which may be agreed to by the parties for resolution of their dispute. Upon the escrow of funds in the amount of the claimed lien, the lien or claim of lien shall be automatically dissolved, and the broker shall be deemed to have an equitable lien on the escrow funds pending a resolution of the broker’s claim. The escrow shall not be released until a resolution is reached and agreed to by all necessary parties or ordered by a court. The parties may agree to any alternative procedures which would allow the transaction to close which are available and are acceptable to the parties and to the broker claiming the lien in the transaction.

Legislative History

(Act 98-160, p. 264, §4.)