How to File a Mechanic’s Lien for Unpaid Broker’s Commission on a Commercial Lease in New York
As a real estate broker or sales agent, securing your commission is vital, especially when working on a large commercial lease. Fortunately, New York Lien Law provides a legal remedy if you are not paid for your services. Under New York Lien Law § 10, brokers and sales agents have the right to file a Mechanic’s Lien for unpaid commissions on commercial leases that meet specific criteria.
Here’s a guide to help you understand the process and how Speedy Lien can assist you in filing your lien.
What Qualifies for a Broker’s Commission Lien?
In New York, a broker or sales agent can only file a Mechanic’s Lien for unpaid commissions on commercial lease agreements that meet the following requirements:
- The lease must be for a commercial property – Residential leases do not qualify under this law.
- The lease must be for a term of 36 months or longer – Short-term leases are excluded from this protection.
Timeline for Filing the Lien
You have a limited window to file your lien. According to New York Lien Law, the lien may be filed within eight months after the final commission payment was due. However, no lien can be filed later than five years after the first commission payment was made. This timeline is strict, so it’s important to act quickly if a payment is overdue.
How to File a Mechanic’s Lien for an Unpaid Commission
The process of filing a Mechanic’s Lien for an unpaid broker’s commission involves gathering necessary documents, such as the lease agreement and commission agreement, and filing the lien with the appropriate county clerk’s office.
Here’s a general overview of the steps:
- Confirm eligibility – Make sure the lease meets the criteria (commercial property, term over 36 months).
- Prepare necessary documentation – You’ll need the lease and commission agreements, along with any correspondence showing the unpaid commission.
- File the lien.
Given the complexity of the process, many brokers prefer to work with professionals to ensure the lien is filed correctly and on time.
Why File a Mechanic’s Lien?
A Mechanic’s Lien for Unpaid Broker’s Commission can be an effective tool in recovering unpaid commission. By placing a lien on the commercial property, you create a legal claim that must be addressed before the property can be sold, refinanced, or otherwise transferred. This forces the property owner to resolve the payment dispute, often leading to quicker resolution.
Call Speedy Lien to File Your Broker’s Commission Lien
Filing a lien can be time-consuming and complicated, but Speedy Lien is here to help. Our team has years of experience filing Mechanic’s Liens in New York, and we can take care of the entire process for you.
Don’t wait too long—ensure you protect your right to payment. If you need help filing a Mechanic’s Lien for an unpaid commission on a commercial lease, Speedy Lien can guide you every step of the way. Call Speedy Lien to file your Unpaid Broker’s Commission Lien.
Visit us online at Speedy Lien Broker’s Lien or call us today to get started! Our Frequently Asked Questions page.
Dillon Nash, Executive Vice President
Speedy Lien, Inc.
212-203-7420 or 516-679-6702 or 203-718-3800 EXT. 104
www.SpeedyLienInc.com/File-a-Lien
New York City: 315 Madison Avenue – Suite 2600, New York, NY 10017
Long Island: 200 Garden City Plaza – Suite 225, Garden City, NY 11530
Connecticut: 470 Main Street – Suite 301, Ridgefield, CT 06877
