broker’s and appraiser’s liens
In Texas, the Broker’s and Appraiser’s Lien on Commercial Real Estate Act (the “Act”), codified in Chapter 62 of the Texas Property Code, is intended to provide a Broker or Appraiser with a legal means to secure the payment of their commission arising from a commercial transaction by establishing a statutory lien on the property involved. By definition, a “Broker” is a person licensed as a broker under the Texas Occupations Code, and is not acting as a residential rental locator, or a person that is licensed or certified as a real estate appraiser under the Code.
In order for a Broker to obtain a perfected lien, their contract or fee agreement must be signed by the party with the real estate interest, or the party’s authorized agent, and must include very specific disclosures and notices. Failure to include these requirements could be fatal to the establishment of a lien under the Act.
what the commercial real estate act means for brokers
The Act gives Brokers the ability to secure their earned fees or commissions with a statutory lien. This lien attaches immediately upon the filing of a notice of the lien in the real property records of the county in which the property is located. In addition, notice should also be given to all parties involved. After notice of the filing is given, the escrow agents and parties to the transaction may not finalize the transaction until: (1) the lien is released by the Broker, (2) the buyer or tenant purchases or leases the property subject to the lien, or (3) funds to secure the disputed fee or commission are held in escrow.
the farah law firm can help you enforce your broker’s and appraiser’s liens
If perfected, the Broker’s and Appraiser’s Lien on Commercial Property can be a very powerful tool in securing earned fees or commissions. The real estate attorneys at The Farah Law Firm are available to draft your contracts and fee agreements or review existing documents to ensure that they comply to the specific requirements of the Act. Contact one of our real estate attorneys today to make certain that your right to earned fees or commissions are protected under the Broker’s and Appraiser’s Lien on Commercial Real Estate Act.
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