Commercial Leases are covered by the Florida Statute Commercial Real Estate Sales Commission Lien Act 475.01 Part IV
Florida Real Estate Commission, If you found a location for a commercial tenant or a tenant for a landlord, or if they renewed on a location you previously found them, you can enforce your right to the commission.
A “Broker” is broadly defined, by Florida Statute Section 475.01:
“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 interests … 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 …and all persons who advertise rental property information or lists. …The term “broker” also includes any person who is a general partner, officer, or director of a partnership or corporation which acts as a broker… See Fla. Stat. Sec. 475.801
Follow these steps to enforce your right to a Florida real estate commission:
Provide a Disclosure
Provide a disclosure of the entitlement to a commission which references the broker’s agreement with the person owing commission. See Exhibit A below and Fla. Stat. Sec. 475.705
Earn the Commission
This occurs when “The owner enters into a lease of all or part of the commercial real estate specified in the brokerage agreement, provided that a commission would be payable to the broker pursuant to the brokerage agreement for that lease.” See Fla. Stat. Sec. 475.803
Provide a Lien Notice within Thirty Days
A lien notice made by a broker with respect to a commission claimed under this part shall be in writing, shall be signed and sworn to or affirmed by the broker under penalty of perjury before a notary public…See Exhibit B below and Fla. Stat. Sec. 475.805
Record the Lien Notice within Ninety Days
Record the lien notice in the Public Records in the county or counties in which the commercial real estate is located. (“County Recorder” in Miami-Dade is located at 22 NW 1st Street) See Florida Statute Sec. 475.807
Within Seven Days, Mail a copy of the recorded Lien Notice
Mail a copy to the person who owes the commission. (Use certified mail and keep the receipts so you have proof!)
Then, you have the ability to collect your commission:
If you represented the Landlord, then against the LANDLORD’S RENTAL INCOME; or
If you represented the Tenant, then against the TENANT’S POSSESSION OF THE PROPERTY.
The person owing commission has sixty days to contest the lien by filing the a notice of lien contest in the public records.
If they send you a letter contesting the lien, you must sue within sixty days of receiving their letter.
Foreclose on the Lien
Once the lien is recorded, then you need to file a lawsuit to enforce the lien. This lawsuit is like a mortgage foreclosure, but it is a lien foreclosure. See Fla. Stat. Sect. 475.809
- In County Court if the amount is less than $15,000
- In Circuit Court if the amount is more than $15,000
- In the county where the real estate is located.
- You can win your legal fees back if you are enforcing your rights!
If you need help collecting a real estate commission owed to you, please make an appointment for a consultation with us. J. Muir & Associates can help!
Exhibit A
Commercial Real Estate Sales Commission Lien Act
Disclosure to Owner
The Florida Commercial Real Estate Sales Commission Lien Act provides that when a broker has earned a commission by performing licensed services under a brokerage agreement with you, the broker may claim a lien against your net sales proceeds for the commission. The broker’s lien rights under the act cannot be waived before the commission is earned.
____________________
Date
_________________________________
Owner’s Signature (Optional)
Exhibit B
Broker’s Commission Notice under the
Florida Commercial Real Estate Sales Commission Lien Act
Notice is hereby given, pursuant to the Florida Commercial Real Estate Leasing Commission Lien Act, part IV of chapter 475, Florida Statutes (the “act”), that the undersigned real estate broker is entitled to receive a leasing commission from the owner named below pursuant to the terms of a written brokerage commission agreement regarding a lease of the commercial real estate described below, and the undersigned broker claims a lien under the act against the owner’s interest in the commercial real estate in the amount set forth below.
1. Name of the owner who is obligated to pay the commission:
2. (Check one:) The owner obligated to pay the commission is:
[ ] the landlord under the lease.
[ ] the tenant under the lease.
3. Name of the person owning the fee simple interest in the commercial real estate, if other than the owner who is obligated to pay the commission:
4. Legal description of the commercial real estate:
5. Name, mailing address, telephone number, and Florida broker license number of the undersigned broker:
6. Effective date of the written brokerage commission agreement between the owner and the broker under which the commission is or will be payable: , .
7. Amount of commission claimed by the undersigned broker:
$ , or percent of rents payable under lease, or [specify other formula for determination of commission amount]:
8. The lease for which the commission is claimed is described as follows [provide all information known to the broker]:
Name of landlord:
Name of tenant:
Date of lease: ,
Leased premises:
9. Automatic renewal commissions (check yes or no): Is the undersigned broker claiming a commission that may become payable if the lease is later renewed or modified to expand the leased premises or to extend the lease term, but the written brokerage commission agreement does not expressly require the broker to perform any additional services in order to receive this later commission?
[ ] Yes
[ ] No
If yes, specify the amount of such later commission or the formula for computing the later commission:
10. The expiration date of this lien notice is 2 years after the date of recording, unless the answer to paragraph 9 is yes, in which case the expiration date of this lien notice for the commission described in paragraph 9 is 10 years after the date of recording.
11. The undersigned broker, under penalty of perjury, hereby swears or affirms that the undersigned broker has read this lien notice, knows its contents and believes the same to be true and correct, and that the undersigned broker is making this commission claim pursuant to the written brokerage commission agreement described in this lien notice.
Signed:_________________________
Broker
Signed and sworn to or affirmed under penalty of perjury before me, a notary public, this ___th day of __________________, 2019.
__________________________________
Notary Public, State of _______________
[Notary Seal]
_________________________________
My Commission Expires:
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