Texas Property Code 62.081 – Release of Lien
(a) Not later than the fifth day after the date a broker receives a written request from the owner of a commercial real estate interest on which a lien is claimed, the broker shall furnish to the owner a release of indebtedness and any lien claimed if:
(1) the debt that is the basis for the lien is satisfied; or
(2) the lien is discharged under § 62.022, rendered void under § 62.026 or 62.062, or extinguished under § 62.031.
(b) When a condition occurs that would preclude the broker from receiving a commission under the terms of the commission agreement that is the basis for the lien, the broker shall, not later than the 10th day after the date the broker receives a written request from the owner of the commercial real estate interest on which the lien is claimed, furnish to the owner a release of indebtedness and any lien claimed.
Terms Used In Texas Property Code 62.081
- Contract: A legal written agreement that becomes binding when signed.
- Escrow: Money given to a third party to be held for payment until certain conditions are met.
- Lien: A claim against real or personal property in satisfaction of a debt.
- Written: includes any representation of words, letters, symbols, or figures. See Texas Government Code 311.005
(c) Not later than the 10th day after the date a broker receives a written request for the release of the broker’s lien from the escrow agent responsible for closing the purchase and sale of a commercial real estate interest on which the lien is claimed, the broker shall furnish to the escrow agent a release of indebtedness and any lien claimed if:
(1) the commercial real estate interest to which the lien attaches is subject to a contract for purchase and sale;
(2) the release of indebtedness and any lien claimed is conditioned on the closing of the transaction; and
(3) the broker would otherwise be obligated to release the indebtedness and any lien claimed under Subsection (a) or (b) on the closing of the transaction.
(d) A release of lien must be in a form that permits the instrument to be filed of record.