Mechanic's Lien Q & A:
BROADCAST FAX REPORT MAY 15, 1997 - Mechanic's Lien
Q. Can a Buyers Agent file a Mechanics Lien?
NO! The purpose of the Mechanics Lien is to protect the legitimate position of claiming a debt owed to an agency by a seller client pursuant to a contract (including a carry-over clause.) It is NOT appropriate for a buyers agent or sellers subagent to file a lien against the sellers property. Liens against sellers by cooperating agents who believe they were the procuring cause are inappropriate. Such claims should be taken up in the REALTORŪ arbitration process.
January 12, 1996 Broadcast Fax:
LEGAL REMINDER / MECHANIC'S LIEN: When filing a Mechanic's Lien be sure you are using your legal corporate name. One firm reported using a DBA that was only filed with the Maine Real Estate Commission, not the legal corporate name registered with the Secretary of State's office. Lesson: be sure you have made appropriate legal filings of your DBA as well as use your legal name on legal documents.
June 4, 1996 Broadcast Fax:
MECHANICIS LIEN AVAILABILITY: The listing agent who has the contract with the seller is the only one who has the right to file a mechanic's lien against the seller and the seller's property prior to closing. A seller's subagent and a buyers agent have no privity of contract with the seller and so no right to file a mechanic's lien. Their complaint for non-payment of a commission is with the listing broker and should be dealt with through arbitration. Selling agents are asked to sign lien waivers at closing, not because they had lien rights, but because title insurance companies require them to be signed by all brokers. If selling agents do file a mechanic's lien, the listing broker should endeavor to enter an "agreement to disagree" with the unhappy agent. Hold the disputed commission in escrow. Arbitrate it after closing. The issue should be between the brokers and not involve the buyers and sellers.