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:

The provisions of this subdivision [294-b] shall only apply to real property improved by one to four-family dwelling and to individual condominium units and individual cooperative apartments where the one- to four-family dwelling, condominium unit or cooperative apartment is used or occupied, or intended to be used or occupied wholly or partly, as the home or residence of one or more persons (italics supplied).


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:

To aid in enforcing the recovery of brokerage commissions for residential real property and cooperative apartments due under affidavits of entitlement filed with a County Clerk.

This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.

To view this content, please continue to their sites.

Not a Lexis Subscriber?
Subscribe Now

Not a Bloomberg Law Subscriber?
Subscribe Now

Why am I seeing this?

LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.

For questions call 1-877-256-2472 or contact us at [email protected]