§ 34-49-5. Escrow of disputed amounts.
(a) Except as otherwise provided in this section, whenever a claim for lien has been filed
with the appropriate land evidence records, and an escrow account is established either
from the proceeds from the transaction, conveyance, or any other source of funds in
an amount computed as one hundred fifty percent (150%) of the amount of the claim
for lien, then the lien against the real estate shall be extinguished and immediately
become a lien on the funds contained in the escrow account. Upon creation of such
escrow, the lien claimant shall be required to provide and record a release of lien
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§ 34-49-5. Escrow of disputed amounts.
(a) Except as otherwise provided in this section, whenever a claim for lien has been filed
with the appropriate land evidence records, and an escrow account is established either
from the proceeds from the transaction, conveyance, or any other source of funds in
an amount computed as one hundred fifty percent (150%) of the amount of the claim
for lien, then the lien against the real estate shall be extinguished and immediately
become a lien on the funds contained in the escrow account. Upon creation of such
escrow, the lien claimant shall be required to provide and record a release of lien
against the real estate within five (5) business days. In the event that the lien
claimant fails to provide or record a release of lien, then the escrowee is hereby
authorized to either: (1) Execute and record a release of lien; or (2) Pay into the
registry of the superior court in the county where the land is located an amount equal
to one hundred fifty percent (150%) of the amount claimed in the notice of lien; or
(3) In lieu of cash, deposit in the registry of the court the bond of a surety company
licensed to do business in this state in the amount of one hundred fifty percent (150%)
of the amount claimed in the notice of lien. On proper proof of payment or deposit
and on motion of the owner or lessee or tenant, any justice of the superior court
shall enter ex parte, an order discharging and releasing the notice of lien and dismissing
the cause as to the owner or lessee or tenant and as to all persons having any title,
claim, lease, mortgage, attachment, or other lien or encumbrance, and upon entry of
the order, the property shall be as if no notice of lien was recorded. Provided, however,
that with respect to the escrowed funds and/or surety bond, proceeds the real estate
broker's lien attaches to such escrowed funds and/or surety bond proceeds whichever
applies;
(b) The requirement to establish an escrow account or election to take measures described
in subdivision (a)(2) or (a)(3) above, shall not be cause for any party to refuse
to complete or close the transaction.