An Overview of Commercial Real Estate Broker Lien Laws
Although state laws vary in their approach, most laws require that the lien language be placed in a written brokerage agreement signed by both the client, the broker, and the brokerage firm. Additionally, lien rights can typically only be exercised by the primary broker. In other words, those working under the broker have no authority to file or enforce a commission lien. This means that salespeople must rely on the broker to enforce any lien rights.
As more states adopt commercial real estate broker lien laws, brokers will have a greater degree of protection when brokering transactions. Ultimately, this not only protects the broker, but also provides benefits to the general marketplace since it ensures the broker can invest heavily in marketing and in time spent with the client, without the risk of non-payment.