Florida Broker Practice Exam

What is the function of the Commercial Real Estate Sales Commission Lien Act?

1. Establish required licensing for brokers

2. Provide lien rights for earned commissions

3. Regulate appraisal processes

4. Set educational requirements for agents

The correct answer is: Provide lien rights for earned commissions

The Commercial Real Estate Sales Commission Lien Act serves the important function of providing lien rights specifically for earned commissions in commercial real estate transactions. This act empowers brokers to place a lien on the property for which they have provided services when they are owed a commission. The significance of this is that it ensures brokers have a legal claim to the commission they have rightfully earned after performing their duties under a listing agreement. By having this protection, brokers can enforce their rights more effectively and secure payment for their services in commercial real estate transactions. In contrast, establishing required licensing for brokers, regulating appraisal processes, or setting educational requirements for agents are functions that relate to other aspects of real estate practice but are not the focus of the Commercial Real Estate Sales Commission Lien Act. Each of these areas is governed by separate laws and regulations that specifically address those needs within the real estate sector.