Title 44, Chapter 14, Section 604
( 44-14-604)
Except as otherwise provided in this Code section, whenever a claim
for lien has been filed with the clerk of a superior court that
would prevent the closing of a transaction or conveyance, an escrow
account shall be established from the proceeds from the transaction
or conveyance in an amount sufficient to release the claim for lien.
The requirement to establish an escrow account, as provided for in
this Code section, shall not be cause for any party to refuse to
close the transaction. These moneys shall be held in escrow until
the parties' rights to the escrowed moneys have been determined by
written agreement of the parties, by a court of law, 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. Upon the release of the commercial real estate lien by
the broker, the broker shall be deemed to have an equitable lien on
the escrow funds pending a resolution of the broker's claim and 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 are not required to follow this escrow procedure if
alternative procedures which would allow the transaction to close
are available and are acceptable to the transferee in the
transaction. If the proceeds from the transaction are insufficient
to release all liens claimed against the commercial real estate,
including the broker's lien, then the parties are not required to
follow the escrow procedure in this Code section. |