Florida Broker Practice Exam

Under what condition may a broker place a lien on real property for nonpayment of commission?

1. If the property owner is in breach of contract

2. If the broker has express authorization in a contractual agreement

3. If the seller requests it in writing

4. If the commission is over $500

The correct answer is: If the broker has express authorization in a contractual agreement

A broker may place a lien on real property for nonpayment of commission when there is express authorization in a contractual agreement between the broker and the property owner. This is grounded in the legal concept that a lien, which is a legal right or interest that a lender has in the borrower's property, can only be established if there is explicit consent or a contractual basis permitting such action. In such agreements, the terms usually outline the conditions under which the broker may seek a lien, ensuring that there is mutual understanding and consent for the broker to secure a right against the property for unpaid commissions. This legal framework provides protection to brokers and ensures transparency in the transaction process, requiring that all parties are aware and have acknowledged these terms in writing. Other choices do not provide the legal basis required for placing a lien. While breach of contract may lead to other legal actions, it does not directly allow for a lien without prior authorization. A seller's request in writing does not automatically create the legal right to a lien unless it is framed within a broader contractual context that grants such authority. Lastly, the threshold of the commission amount does not determine the right to place a lien; rather, the agreement between the broker and the owner holds primary importance.