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            Listing or Commission Agreements

Broker's Right to Lien the Property to Secure Commission

From the perspective of the real estate broker, it may be
desirable to include in the listing or commission agreement
certain provisions that allow the broker to lien the real estate if
they do not receive their commission.  However the property
owner must be cognizant of the legal affects of including such
provisions in a listing or commission agreement.  Florida law
only permits a broker to lien property to secure a commission in
two instances: (1) if the broker first obtains a judgment against
the party that owes the commission and the broker then secures
a judgment lien against that party or (2) if the broker and the
party who is responsible for the payment of the commission
agree in writing that the broker is permitted to lien the property
to secure their commission.  Therefore if the broker does not
secure written permission from the property owner to lien the
property in their pursuit of a commission, then the broker must
resort to litigation and expend the time and effort and incur the
expense related to securing a judgment against the owner of
the property.

Also, if the broker wishes to avail themselves of the Florida
statutory commission lien procedures, which provide
advantages to the broker who is trying to collect a commission,
then there are specific, statutorily required disclosures and
notices which must be provided to the party who will be
responsible for the payment of the commission and who’s
interest in the real estate may be encumbered by the
subsequent lien.  Therefore the broker must also be cognizant
of these specific statutory requirements if they wish to preserve
their rights.

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Law Office of
Craig W. Little, P.A.