Texas Property Code 62.022 – Waiver, Release, or Discharge of Lien; Assumption of Commission Obligation
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(a) Except as provided by Subsection (b), the waiver of a broker’s right to a lien under this chapter, or a release given for the purpose of releasing the broker’s lien before the commission is satisfied or forgiven, is void.
(b) A broker’s entitlement to a lien on the interest of an owner or tenant in commercial real estate shall be automatically waived if:
(1) the commission is earned and payable for services provided relating to a lease transaction; and
(2) the commission agreement is included as a provision of the lease agreement.
Terms Used In Texas Property Code 62.022
- Entitlement: A Federal program or provision of law that requires payments to any person or unit of government that meets the eligibility criteria established by law. Entitlements constitute a binding obligation on the part of the Federal Government, and eligible recipients have legal recourse if the obligation is not fulfilled. Social Security and veterans' compensation and pensions are examples of entitlement programs.
- Escrow: Money given to a third party to be held for payment until certain conditions are met.
- Lease: A contract transferring the use of property or occupancy of land, space, structures, or equipment in consideration of a payment (e.g., rent). Source: OCC
- Lien: A claim against real or personal property in satisfaction of a debt.
- Mortgagee: The person to whom property is mortgaged and who has loaned the money.
- Person: includes corporation, organization, government or governmental subdivision or agency, business trust, estate, trust, partnership, association, and any other legal entity. See Texas Government Code 311.005
(c) A lien under this chapter is discharged by:
(1) a court order discharging the lien;
(2) paying the commission to the broker named in the commission agreement; or
(3) establishing an escrow account described by Subchapter F.
(d) A person who assumes an owner’s or tenant’s commercial real estate interest is bound by a commission agreement included in a lease agreement unless an escrow account is established under Subchapter F or a bond is provided under Subchapter G.
(e) This section does not affect the rights of a mortgagee who forecloses on commercial real estate and does not assume the lease on which a commission agreement is based.