Texas Property Code 62.061 – Suit to Foreclose Lien
(a) A broker may not bring a suit to foreclose a lien under this chapter unless the commission is earned and payable. A broker may bring a suit to foreclose a lien in any district court for the county in which the commercial real estate is located by filing a sworn complaint stating that the notice of lien has been recorded.
(b) A complaint in a suit filed under this section must contain:
(1) a brief description of the commission agreement that is the basis for the lien, including:
(A) a description of the disclosure of the broker’s right to the lien contained in the commission agreement;
(B) the date on which the commission agreement was executed;
(C) the event for which a commission is considered to be earned; and
(D) the event for which a commission is considered to be payable;
(2) a description of the services performed by the broker;
(3) the amount of the payable commission that is unpaid;
(4) a description of the commercial real estate to which the lien attaches; and
(5) other facts necessary for a full understanding of the rights of the parties.
Terms Used In Texas Property Code 62.061
- Complaint: A written statement by the plaintiff stating the wrongs allegedly committed by the defendant.
- Defendant: In a civil suit, the person complained against; in a criminal case, the person accused of the crime.
- 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.
- Lien: A claim against real or personal property in satisfaction of a debt.
- 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
- sworn: includes affirm or affirmed. See Texas Government Code 312.011
(c) The broker must include as a defendant in a suit brought under this subchapter each person the broker believes to have an interest in the commercial real estate that is subordinate to or encumbered by the broker’s lien.
(d) If the broker and a person against whom the broker claims a commission use alternative dispute resolution procedures to resolve a dispute concerning entitlement to the broker’s commission, the broker’s lien remains valid, and any suit to foreclose the lien is stayed until the alternative dispute resolution process is completed.