§ 294-b. Recording brokers affidavit of entitlement to commission for
completed brokerage services. 1. A duly licensed real estate broker who
asserts that he or she has produced a person who was ready, able and
willing to purchase or lease all or any part of a parcel of real
property or any interest in a cooperative apartment pursuant to a
written or oral contract of brokerage employment between the owner of
said parcel of real property or interest in a cooperative apartment and
such broker, and who asserts that such person or a party acting on his
or her behalf subsequently contracted to purchase or lease, or did
purchase or lease such real property or any part thereof, or any
interest in a cooperative apartment and who asserts that he or she is
entitled to a commission pursuant to such written or oral contract, may
file an affidavit of entitlement to commission for completed brokerage
services in the office of the recording officer of any county in which
any of the real property is situated.

2. Such affidavit shall include: (i) the name and license number of
the broker claiming the commission; (ii) the name of the seller or
person responsible for commission; (iii) the name of the person
authorizing the sale on behalf of the seller, if any, and the date of
such authorization; (iv) a copy of the written agreement, if any; (v) a
description of the real property or interest in the cooperative
apartment involved; (vi) the amount of commission claimed; (vii) a
description of the brokerage services performed; and (viii) the dates
thereof. Recording such affidavit shall not invalidate any transfer of
real property or lease thereof. Such affidavit shall not be deemed to
create a lien and shall be discharged one year after filing.

3. Upon receipt by the county clerk of a broker's affidavit of
entitlement to commission for completed brokerage services for the
purpose of recording, entering and indexing, the clerk shall record such
affidavit in the lien docket and shall note thereon that such notice
does not constitute a lien nor shall it invalidate any transfer or
lease. In payment for said services the county clerk shall be entitled
to receive a fee equivalent to that received for recording a deed and
pages thereof.

4. (a) Within five business days after filing the affidavit of
entitlement, the broker shall serve a copy of such affidavit, along with
the fee required pursuant to paragraph (c) of subdivision five of this
section, upon the seller by registered or certified mail, return receipt
requested or by personal delivery, to the address set forth in the
written contract of brokerage employment. If the delivery of the deed or
delivery of the stock certificate and/or proprietary lease will occur in
five business days or less from the filing of the affidavit of
entitlement, then the broker shall personally deliver a copy of the
affidavit of entitlement to the seller. Where there is more than one
seller, service upon one seller shall be deemed sufficient to meet the
requirements of this paragraph. Failure to serve the affidavit of
entitlement upon the seller pursuant to this paragraph shall cause a
forfeiture of the broker's rights under subdivision five of this
section. In the event the seller fails to deposit any monies pursuant to
paragraph (a) of subdivision five of this section, the seller shall
immediately return the fee provided by the broker.

(b) If the seller is represented by an attorney and has provided the
attorney's contact information to the broker prior to the filing of the
affidavit of entitlement, the broker shall provide a copy of the
affidavit of entitlement to the seller's attorney via mail, facsimile,
e-mail, personal delivery or any other agreed upon method within five
business days of the filing of the affidavit of entitlement. Failure to
deliver a copy of the affidavit of entitlement to the seller's attorney
pursuant to this paragraph shall not cause a forfeiture of the brokers
rights under subdivision five of this section.

5. (a) Whenever an affidavit of entitlement by a duly licensed real
estate broker, which includes a written contract of brokerage employment
containing the notices set forth in paragraph (j) of this subdivision,
has been recorded pursuant to this section prior to the delivery of a
deed in connection with a sale of all or any part of a parcel of real
property, or delivery of the stock certificate and/or proprietary lease
in connection with the sale of a cooperative apartment, and the broker
does not receive the compensation called for under the terms of such
written contract at or prior to the delivery of the deed or delivery of
the stock certificate and/or proprietary lease, the lesser of the net
proceeds of the sale or the amount of the unpaid portion of the
compensation agreed to in such written contract shall be deposited by
the seller, at the time of delivery of the deed or delivery of the stock
certificate and/or proprietary lease, with the recording officer in
whose office such affidavit of entitlement had been recorded.

(b) In the event multiple affidavits of entitlement are filed in
connection with a sale of real property or any interest in a cooperative
apartment pursuant to this section, the seller shall be obligated to
deposit an amount equal to the lesser of the net proceeds of the sale or
the greatest amount of the unpaid portion of the compensation agreed to
in the written contracts of brokerage employment attached to the
multiple affidavits of entitlement.

(c) Upon deposit of any monies pursuant to paragraph (a) of this
subdivision, the recording officers shall be entitled to receive a fee
of twenty-five dollars, which shall be paid by the real estate broker.
The real estate broker shall make the twenty-five dollar fee payable to
the recording officer in such form of payment that is accepted by the
recording officer.

(d) The monies deposited with the recording officer pursuant to this
subdivision shall be held pursuant to subdivision (b) of section
twenty-six hundred one of the civil practice law and rules until the
rights of the seller and broker to such monies have been determined by
order of a court of competent jurisdiction as provided in this
paragraph. All deposits of money pursuant to this subdivision shall be
deemed paid into court and shall be subject to the provisions of article
twenty-six of the civil practice law and rules, except as otherwise
provided in this subdivision. An order for the payment of such monies to
the broker or seller may be made in any action or proceeding determining
or declaring the entitlement, if any, of the broker to compensation
under the written contract of brokerage employment recorded with the
affidavit of entitlement or as otherwise provided in rule twenty-six
hundred six of the civil practice law and rules or, whether or not an
action or proceeding has been commenced, may be based upon a stipulation
signed by the seller and the broker. Any application for an order
pursuant to this paragraph made by the broker or the seller shall be on
motion with notice to the other party, except that an application based
upon a stipulation signed by the seller and the broker may be submitted
without notice if the stipulation so provides.

(e) If neither the broker nor the seller commences an action or
proceeding described in paragraph (d) of this subdivision within sixty
days from the day of deposit of monies pursuant to paragraph (a) of this
subdivision, which time limit shall not be extended, the seller, upon
petition, shall be entitled to an order directing the payment to the
seller of such monies out of court, including any accrued interest
thereon, less any fees to which any public officer may be entitled
pursuant to law, but such an order shall not be deemed to determine the
broker's claim for a commission.

(f) Notwithstanding any other provision of law to the contrary, upon
the seller making the deposit required by paragraph (a) of this
subdivision, any action or proceeding based upon the contractual
obligation to pay a commission under the contract of brokerage of
employment shall be commenced by the broker within six months of the
deposit of the monies pursuant to paragraph (a) of this subdivision.

(g) The obligation to deposit monies pursuant to this subdivision or
the seller's failure to do so shall not constitute or be deemed to
create a lien or encumbrance against any real property. Any violation of
this subdivision shall not invalidate any transfer of real property.

(h) In any action or proceeding commenced pursuant to this subdivision
when the seller has not made the deposit required by this subdivision,
and it is determined by a court that the broker is entitled to
compensation pursuant to the written contract of brokerage employment,
the broker shall be awarded costs, including the fee paid pursuant to
paragraph (c) of this subdivision, and reasonable attorneys' fees.

(i) Nothing in this subdivision shall be construed to prohibit a
broker from waiving a seller's obligation to deposit money under this
subdivision, provided such waiver is set forth in an instrument signed
by or on behalf of the broker. Such instrument may be a written contract
of brokerage employment or any other instrument.

(j) The provisions of this subdivision shall only apply when the
written contract of brokerage employment contains the following
statement to the seller in clear and conspicuous bold face type:

"At the time of closing, you may be required to deposit the broker's
commission with the county clerk in the event that you do not pay the
broker his or her commission as set forth herein. Your obligation to
deposit the broker's commission with the county clerk may be waived by
the broker."

(k) The provisions of this subdivision shall only apply to real
property improved by a one to four family dwelling and to individual
condominium units and individual cooperative apartments where the one to
four family dwelling, condominium unit or cooperative apartment is used
or occupied, or intended to be used or occupied, wholly or partly, as
the home or residence of one or more persons.