Do Real Estate Brokers Have a Lien Right in Texas?
By Trey Wilson, San Antonio Real Estate Attorney and Texas Water Lawyer
In Texas commercial real estate, unpaid broker commissions can lead to expensive disputes—and sometimes litigation. Fortunately, Chapter 62 of the Texas Property Code provides licensed real estate brokers with a powerful statutory remedy: a lien on commercial property to secure payment of a commission. But as with most legal tools, there’s a catch: you must follow the rules to the letter, or the lien right evaporates.
One of the most overlooked requirements? Disclosure of the lien right in the commission agreement itself.
📘 What Is a Broker’s Lien Under Texas Law?
Under Chapter 62 of the Texas Property Code, a licensed real estate broker can file a lien against a seller’s, buyer’s, landlord’s, or tenant’s interest in commercial real estate if the broker:
- Earned a commission under a written commission agreement; and
- Properly records a notice of lien in the real property records as required by Section 62.024.
The statute explicitly covers sales, leases, and purchase transactions involving commercial real estate—not residential deals. The lien, if properly recorded, can create leverage for the broker in securing payment, especially when a property is under contract or preparing to close.
⚠️ The Critical Requirement: Disclosure in the Commission Agreement
This is where many brokers—and even attorneys—get tripped up. Section 62.021(e) requires that:
“The broker’s right to claim a lien based on the commission agreement must be disclosed in the commission agreement.”
In other words, if your commission agreement doesn’t explicitly state that you may file a lien, you have no lien right under Chapter 62—even if the rest of the agreement is rock solid.
This limitation doesn’t void your right to recover a commission through the courts by brining a breach of contract claim. It does, however, eliminate the ability to record a lien—a powerful pre-litigation remedy that could make all the difference in collecting the commission a broker is owed.
📄 A Sample Provision to Include in Your Agreements
The statute does not prescribe any “magic language” that must be used in the commission agreement to disclose the broker’s lien right. This means that just about any language plainly stating that the law allows the broker the right to record a lien for non-payment will suffice
The Texas REALTORS commercial forms include a simple and helpful model disclosure:
NOTICE: Under Chapter 62, Texas Property Code, Broker is entitled to claim a lien against the Property to secure payment of an earned commission.”
Incorporating this (or similar) language into your listing or commission agreements is essential if you want to preserve the option of filing a lien under Texas law.
🧾 Does the Absence of Lien Language Kill the Commission Claim?
No. The absence of a lien provision does not render the entire commission agreement invalid. A properly executed commission agreement may still be enforceable through a breach of contract lawsuit or other remedies. But those paths are slower, more expensive, and carry more uncertainty than recording a lien to pause a closing or trigger a resolution.
⚖️ Key Takeaways for Brokers, Lawyers, and Commercial Landlords
- To enforce a broker’s lien in Texas, you must have a written agreement that discloses the lien right.
- Even without the lien provision, you may still recover your commission—but only through the court system.
- Promulgated commercial forms from Texas REALTORS and other associations now routinely include lien disclosure language.
- Review and revise your templates to ensure this protection is not accidentally omitted.
📌 Final Thoughts
Commercial brokers play a critical role in real estate transactions—but they’re often the last to be paid, and the first to be sidelined when a deal turns sour. Chapter 62 of the Texas Property Code offers a statutory shield—but only if your paperwork is in order.
In my practice, I sometimes see brokers miss out on lien rights simply because their commission agreement lacked the right language. Don’t let that happen to you. A single sentence could be the difference between leverage, litigation and getting stiffed.
— Trey Wilson, Trey Wilson, San Antonio Real Estate Attorney and Texas Water Lawyer
