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.)
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.
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.
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.