Texas Property Code 62.028 – Priority
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(a) A recorded lien, mortgage, or other encumbrance on commercial real estate, including a recorded lien securing revolving credit and future advances for a loan, recorded before the date a broker’s lien is recorded has priority over the broker’s lien.
(b) A broker’s lien on the commercial real estate interest of a person obligated to pay a commission is not valid or enforceable against a grantee, buyer, lessee, or transferee of the interest of the person obligated to pay the commission if the deed, lease, or instrument transferring the interest is recorded before the notice of the broker’s lien is recorded.
Terms Used In Texas Property Code 62.028
- Deed: The legal instrument used to transfer title in real property from one person to another.
- 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.
- Mortgage: The written agreement pledging property to a creditor as collateral for a loan.
- 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
- Revolving credit: A credit agreement (typically a credit card) that allows a customer to borrow against a preapproved credit line when purchasing goods and services. The borrower is only billed for the amount that is actually borrowed plus any interest due. (Also called a charge account or open-end credit.) Source: OCC
(c) A purchase-money mortgage lien executed by the buyer of the commercial real estate interest has priority over a broker’s lien claimed for the commission owed by the buyer against the commercial real estate interest purchased by the buyer.
(d) A mechanic’s lien that is recorded after a broker’s lien and that relates back to a date before the date the broker’s lien is recorded has priority over the broker’s lien.