Florida Commercial Real Estate Sales Commission Lien Act
Introduction
The Florida Commercial Real Estate Sales Commission Lien Act is an important piece of legislation that governs the payment of commissions to real estate brokers and salespersons in commercial real estate transactions. This act was enacted in 1993 and has since then been amended several times to reflect changes in the industry.
What is the Florida Commercial Real Estate Sales Commission Lien Act?
The Florida Commercial Real Estate Sales Commission Lien Act is a law that allows a real estate broker or salesperson to place a lien on a commercial property if they have not received their commission for a real estate transaction. The lien gives the broker or salesperson a legal claim on the property until they are paid the commission owed to them.
Who is covered by the Florida Commercial Real Estate Sales Commission Lien Act?
The Florida Commercial Real Estate Sales Commission Lien Act covers all licensed real estate brokers and salespersons who are involved in commercial real estate transactions. The law applies to both buyers and sellers of commercial properties, as well as to leasing transactions.
How does the Florida Commercial Real Estate Sales Commission Lien Act work?
If a real estate broker or salesperson is not paid their commission for a commercial real estate transaction, they can file a lien against the property. The lien must be filed within 90 days of the real estate transaction, and the broker or salesperson must provide the property owner with written notice of the lien.
If the commission is still not paid, the broker or salesperson can initiate legal action to foreclose on the lien. If the property is sold, the commission owed to the broker or salesperson will be paid from the proceeds of the sale.
What are the benefits of the Florida Commercial Real Estate Sales Commission Lien Act?
The Florida Commercial Real Estate Sales Commission Lien Act helps protect real estate brokers and salespersons from being cheated out of their rightful commission. It ensures that they are paid for their services and provides a legal mechanism for them to collect their commission if they are not paid in a timely manner.
For property owners, the act ensures that they are dealing with licensed brokers and salespersons who are held to high ethical standards. It also helps prevent disputes over commission payments, which can lead to litigation and other legal problems.
What are the requirements for filing a lien under the Florida Commercial Real Estate Sales Commission Lien Act?
To file a lien under the Florida Commercial Real Estate Sales Commission Lien Act, a real estate broker or salesperson must be licensed in the state of Florida. They must also have a written agreement with the property owner or buyer that outlines the terms of their commission.
The broker or salesperson must file the lien within 90 days of the real estate transaction and provide written notice of the lien to the property owner. They must also include a description of the services they provided and the amount of commission owed.
What happens if the property is sold?
If the property is sold, the commission owed to the broker or salesperson will be paid from the proceeds of the sale. The lien will be removed once the commission is paid in full.
Conclusion
The Florida Commercial Real Estate Sales Commission Lien Act is an important law that protects real estate brokers and salespersons from being cheated out of their rightful commission. It provides a legal mechanism for them to collect their commission if they are not paid in a timely manner, and it helps ensure that property owners are dealing with licensed brokers and salespersons who are held to high ethical standards.