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Legal FAQ's
Commercial Lien

Q:I’m trying to enforce a lien on the seller’s proceeds pursuant to my brokerage agreement but the owner says I’m not entitled to a lien because I didn’t deliver the commission notice set forth in Sec. 475.705 to the owner at the appropriate time. May I be barred from enforcing a lien when I had no knowledge that the owner entered into a contract for sale of the property?


Related Member Benefits

FAR Legal Hotline
At no charge, FAR members may speak with an attorney on a range of topics including licensing, contracts and landlord/tenant matters. Call  407.438.1409.

FAR's Legal Action Fund
The Legal Action Fund of the Florida Association of Realtors® is available to support members, local Realtor Boards/Associations or those persons involved in litigation that has significance to Realtors and Realtor-Associates® as a class, private property rights, or the real estate industry as a whole. Cases shall be limited to those based on points of law and not on factual issues. The Legal Action Fund is administered by the Legal Action Fund Committee within approved guidelines and procedures.


Did You Know?
Condo buyers get free docs

They’re big, they’re bulky and they’re expensive, but sellers can’t pass of the cost of providing a copy of their condominium association documents to the buyer. Section 718.503(2) (a), Florida Statues, provides “… each prospective purchaser who has entered into a contract for the purchase of a condominium unit is entitled, at the seller’s expense, to a current copy of declaration of condominium, articles of incorporation of the association, bylaws and rules of the association, financial information required by section (s.) 718.111, and the documents titled “Frequently Asked Questions and Answers” required by s. 718.504.”
Coming to Terms
How does HUD define “referral”?

There are two types of referrals:
A.  Any oral or written action directed to one person that has the effect of affirmatively influencing another persons’ selection of a provider of a settlement service or business incident to or part of a settlement service. To be considered a referral, the person who selects the provider must be expected to pay for the settlement service or business incident to the settlement service or to pay a charge wholly or partially attributable to the settlement service or business.

B. Requiring a person who pays for a settlement servicer business incident thereto to use a particular provider of a settlement service or business incident thereto.

Under this definition, beware of settlement service providers who offer their services free in the event the transaction fails to close HUD may view that practice as an inducement to refer future business that will result in compensation.