The companion provision of Chapter 925 of the Laws of 1982, in addition to the above restricted right to a lien, consisted of an amendment to the Real Property Law (§294-b). It permitted the recording of a broker’s affidavit of entitlement to commission for procuring a ready and able purchaser or lessee pursuant to a written or oral contract of brokerage employment. Such affidavit, it was stated, “shall not be deemed to create a lien and shall be discharged one year after filing.”
Since its conception a quarter of a century ago the Broker’s Lien Law (as it is known) has, with all its limitations, been effective in giving a broker commission protection, without effect on residential owners or lessors.
2008 Amendment
The new amendment to the Real Property Law makes clear how it differs from the original affidavit of entitlement.
Subdivision (k) of the new amendment states:
Restated, although the right to a Broker’s Lien does not attach to residences, the escrowing of a broker’s commission is available only where a home or residence is involved – a reversal of the principles of consumer protection.
2006 Veto
The new amendment (§294-b Real Property Law) was first proposed and sponsored in 2006 by the same Senate-Assembly combination that successfully sponsored the 2008 legislation. Then-Governor George E. Pataki vetoed it.
The “New York State Introducer’s Memorandum in Support” of the Act (S. 1938) in 2006 states that its purpose is:
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