Posted almost 6 years ago

Enforcing Your Right To A Florida Real Estate Commission

As a real estate broker, if you found a location for a commercial tenant or brought together a tenant and a landlord, or if they renewed their lease on a location you previously found them, then you are able to enforce your right to a real estate commission.

In Section 175.01 of the Florida Statutes, you can find a definition of the term “broker”:

“Broker means a person who, for another, and for a compensation, directly or indirectly paid or promised, expressly or impliedly, or with an intent to collect or receive a compensation, appraises, auctions, sells, exchanges, buys, rents, or offers purchase or rental of any real property or any interest in real property, including mineral rights or leases, or who advertises or holds out to the public by any oral or printed solicitation or representation that she or he is engaged in the business of buying, selling, or renting real property of others, or who takes any part in the procuring of sellers, purchasers, lessors, or lessees, or who directs or assists in the procuring of prospects or in the negotiation or closing of any transaction. The term “broker” also includes any person who is a general partner, officer, or director of a partnership or corporation that acts as a broker.”

How to Enforce Your Right to a Florida Real Estate Commission

If you are entitled to a real estate commission, you can enforce your right to it by taking the following steps:

Provide a Disclosure

The first step in the process is to provide a disclosure of your entitlement to a real estate commission that references your agreement with the person who owes the commission.

Provide a Lien Notice

You must provide a lien notice concerning a commission claimed, which must be in writing. Keep in mind that the lien notice must be signed and sworn to by you, the broker, before a notary public, under penalty of perjury. You must provide the lien notice within thirty days.

Record the Lien Notice

The next step is to record the lien notice in the public records in the county in which the commercial real estate in question is located. You must make sure to record the lien notice in the public records within ninety days.

Mail a copy of the Recorded Lien Notice

Next, you must mail a copy of the recorded lien notice to the person who owes the commission within seven days. To complete this step, you should use certified mail and always keep the receipts so you have proof.

Collect Your Real Estate Commission

After taking the steps outlined above, you will be able to collect your real estate commission.

If you represented a landlord, you must collect your real estate commission against the landlord’s rental income. If you represented a tenant, you can collect your commission against the tenant’s possession of the property.

Receiving a Notice of Lien Contest – How to Proceed

In the State of Florida, the person who owes you a commission will have sixty days to contest your lien by filing a notice of lien contest in the public records. If the person who owes the commission mails you a letter contesting the lien, you must sue him or her within sixty days.

Foreclosing on the Lien

Once the lien is officially recorded, you will need to file a lawsuit to enforce the lien. This lawsuit is known as a lien foreclosure. The court with which you file your lawsuit will depend on the amount of money that is owed to you.

If the amount is less than $15,000, file your lawsuit in county court.
If the amount is more than $15,000, file your lawsuit in circuit court.

Work with a Lawyer!

If you need help enforcing your right to a real estate commission owed to you, we can help you! Call us today at (305) 921-0440 or send us an email to [email protected] to schedule an initial consultation with one of our experienced real estate attorneys.