Lien Net Proceeds

What is the Lien On? (Net Proceeds vs. Real Property)This is a critical legal distinction. The Lien is on the MONEY (Net Proceeds): Under this specific Act, the broker’s lien attaches to the owner’s net proceeds (the cash the seller walks away with), NOT the real estate itself.Why this matters: If the lien were on the land, the buyer wouldn't be able to get "clear title," and the deal would fall apart. By putting the lien on the cash, the closing can still happen, the buyer gets the property, but the seller doesn't get their full check until the dispute is settled.When the deal is about to close and you are worried you won't get paid, you must prepare a Commission Notice. Once the Closing Agent receives your Commission Notice, they are legally required to reserve the disputed money.Example: The seller is selling a warehouse for $1 Million. Your commission is $50,000. The seller says, "I'm not paying the broker."The Result: The Closing Agent proceeds with the sale. They give the seller their money minus the $50,000. The Closing Agent holds that $50,000 in escrow (or deposits it with the court) until a judge decides who is right.