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Is a Realtor Allowed to Place a Lien on a Property for Earned, Unpaid Commission

North CarolinaMechanics LienRight to Lien

I am a Realtor with my own brokerage. I have a valid, fully executed listing agreement and a valid, fully executed sales contract for FULL listing price on a vacant, residential property AS IS with no concessions and a fast closing, as requested by the POA for the owner. Then days before the closing the POA says they are not selling. I've asked why. She only says the family situation has changed. I've asked if I have wronged her in any way with no response. I've asked for her attorney's contract info if she isn't willing to talk to me so we could work this out. No response. I've told her I will be taking legal action. I've researched and I'm still not sure if I can file a lien on the property. I believe someone who came to purchase the collectibles may have made an offer on the property and she's trying to avoid paying me for the commission I have definitely earned. I've worked on this sale that is in my neighborhood for over a year since the brother approached me asking if I could help them get the house emptied and sold for funds to take care of their mother without putting her in a nursing home. I've done all I could to help. I've spent extensive hours talking to this family and my investors, helping them get collectibles sold and get the property emptied and ready for closing. Can I file a lien on the property?

3 replies

Aug 19, 2020
Mechanics lien rights are generally only available to those who make physical improvements to the project property. While serving as a realtor can be a valuable service, it will generally not give rise to mechanics lien rights in North Carolina. With that being said, it doesn't mean other claims won't be available - like breach of contract. And, if the amount due is $10,000 or less, taking the matter to small claims court could lead to a more efficient recovery process.
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Aug 19, 2020

You may well havea broker's lien under North Carolina law. You should consult with counsel; if necessary and assuming this is allowed under North Carolina law, a notice of lien can be recorded in the real property records, and this will get your client's attention.

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