BRO

Brokers

In New York State, ordinary real estate brokerage agreements do not create a lien on real estate. There is a provision of statute permitting a real estate broker to file an affidavit of entitlement, which has no lien or effect on the real estate (New York Real Property Law § 294-b). There is a broker’s lien in connection with licensed real estate brokers who are entitled to a commission pursuant to a written brokerage agreement for leases on non-residential property with a term of three years or more. (See New York Lien Law §§ 2(4) and 10, as amended by L. 1982, ch. 925.)

Requirement

BROR01 STG

Erroneous Broker’s lien

“Broker’s Lien” dated __/__/__, filed on __/__/__; ___(name)___, broker (lienor), against __(name)__, owner; Amount $ ____________. This “lien” appears to be for a sales commission and, if so, does not appear to be in accordance with the requirements of the Lien Law. Proof is required that the lien is not in connection with a commission for a lease of three years or more on non-residential property, and the lien must be removed.

Exception

BROX01 STG

Broker’s Lien

Broker’s lien dated __/__/__, filed on __/__/__; ___(name)___, broker (lienor), against __(name)__, owner; Amount $ ____________. This lien is treated as a mechanic’s lien and must be discharged of record in the County Clerk’s office.

BROX02 STG

Broker’s Affidavit of Entitlement to Commission

For Information Only: Broker’s Affidavit of Entitlement to Commission, dated __/__/__, filed on __/__/__, appears of record. The filing of the Broker’s Affidavit under Real Property Law § 294-b does not create a lien, nor does it invalidate any transfer or lease of the real property.