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Broker Lien Laws
Have you ever had a closing held up due to a brokerage lien? Perhaps you are (or represent) a broker who has a brokerage agreement, but the landlord refuses to pay a commission, notwithstanding the fact that the tenant executed a lease for which the broker was the procuring cause. Today, 34 jurisdictions have some form of statute that specifies whether, how, and for what a broker may file a lien for the non-payment of a commission in connection with the sale or lease of commercial real estate. A few states simply give brokers the right to file liens under mechanics' lien statutes, but more than 30 have enacted broker-specific lien laws. These laws have gained a lot of traction in recent years, with Mississippi and New Mexico as the two most recent adopters in 2014. Knowledge of the broker lien laws in your state is important to understand a broker's respective rights and obligations.
Requirements
Written Agreement
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