A broker's lien is a legal claim that a broker has on the proceeds from a sale they facilitated or on property purchased on behalf of a client. This lien allows the broker to secure payment for their commissions or any advances made to complete the transaction. Essentially, it ensures that brokers are compensated for their services when they assist in sales or purchases.
Broker's liens are primarily used in real estate transactions but can also apply in other fields where brokers operate, such as finance and insurance. In legal practice, this term is relevant in civil law, particularly in property and contract disputes. Brokers may need to file specific forms to assert their lien rights, which can be managed using legal templates from resources like US Legal Forms.
Here are a couple of examples of abatement:
(Hypothetical example) If a real estate broker helps a homeowner sell their property and the sale generates $300,000, the broker may place a lien on that amount to ensure they receive their commission, which is agreed upon in their contract.
(Hypothetical example) A financial broker who advances funds to a client to complete a stock purchase may assert a lien on the shares purchased until the client repays the advance.
| State | Broker's Lien Rules |
|---|---|
| California | Broker's liens must be filed within a specific time frame after the sale. |
| Florida | Florida law requires brokers to provide written notice of the lien to the property owner. |
| New York | In New York, a broker's lien can be placed only on certain types of properties. |
This is not a complete list. State laws vary, and users should consult local rules for specific guidance.
| Term | Definition | Key Differences |
|---|---|---|
| Broker's Lien | A claim on sale proceeds or property by a broker for unpaid commissions. | Specific to brokers and their commissions. |
| Mechanic's Lien | A claim against property for unpaid work or materials provided in construction. | Related to construction work, not brokerage services. |
| Judgment Lien | A claim resulting from a court judgment against a debtor. | Arises from legal judgments, not contractual agreements. |
If you are a broker seeking to assert a lien, ensure you have a valid contract and follow the necessary legal procedures to file your lien. If you are a property owner facing a broker's lien, review the terms of your agreement with the broker. You can explore US Legal Forms for templates that can help you navigate this process. If the situation is complex, it may be wise to consult a legal professional for tailored advice.
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A broker's lien is a legal claim on proceeds from a sale or property purchased by a broker on behalf of a client to secure payment for services.