Auctioneers Now Have Lien Rights Jay West, Lobbyist
For many years, most of the professions (contractors, suppliers, surveyors, lending institutions etc.) that came in contact with real property enjoyed a right of lien for nonpayment…except auctioneers. Now that has changed.
As of July 1st, auctioneers now have lien rights for “denied payment for a commission for fee for services performed”. This language is embodied in Public Chapter 192, passed by both houses of the Tennessee General Assembly and signed by governor Bredesen.
“I believe this is a huge step forward in giving us the same rights as others in the real estate industry,” said David Cole of Kingsport, TAA president. We thank the Tennessee General Assembly for passing this important law. “This just goes to show you what goals we can attain when we stay politically active,” he commented. “No auctioneer in Tennessee can ask the question, ‘What has the Tennessee Auctioneers Association done for me lately?’”, he pointed out.
Below is a copy of the law. As always, please contact your lawyer to determine how this applies to any problems you may have.
(a) Notwithstanding the provisions of §62-19-119, any
auctioneer who performs auctioneering services and is
subsequently denied payment for a commission or fee for services
performed shall have a lien for such work upon the property that
the auctioneer was hired to auction; provided however, that such
lien shall only extend to property that is owned by the person who
has denied payment for a commission or fee for services
performed by the auctioneer.
(b) Notice of the lien shall be filed within thirty (30) days
after the date of the auction with the register's office in the county
or counties in which the property is located. The lien shall not be
effective against a bona fide purchaser for value.
(c) The lien shall continue for a period of ninety (90) days
from the date of filing in the register's office in the county or
counties in which the property is located and until the final
termination of any suit for enforcement brought within such period.
SECTION 2. This act shall take effect July 1, 2007, the public welfare
requiring it.
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