# Real Property (GRP)

## Title 14. Miscellaneous Rules

### Subtitle 3. Commercial Real Estate Broker's Lien

#### Section 14-301

(a) In this subtitle the following words have the meanings indicated unless the context requires otherwise.

(b) "Broker" means:

  (1) An individual licensed as, or otherwise authorized to act as, a real estate broker under Title 17 of the Business Occupations and Professions Article; or

  (2) A corporation or partnership authorized to provide real estate brokerage services under Title 17 of the Business Occupations and Professions Article.

(c) "Broker's lien" means a lien established in accordance with this subtitle.

(d) "Claimant" means a broker claiming a broker's lien under this subtitle.

(e) "Commercial lease" means a lease of building floor space intended to be used by the tenant for a nonresidential use whether or not the lease expressly sets forth a use.

(f)

  (1) "Commercial leasing brokerage agreement" or "brokerage agreement" means a written agreement between a broker and the owner of commercial property that provides for the payment of a commercial leasing commission by the owner to the broker for services in obtaining a commercial tenant regardless as to whether the broker acted as the agent for the owner or the commercial tenant.

  (2) "Commercial leasing brokerage agreement" or "brokerage agreement" includes a written unilateral offer from an owner of commercial property to one or more brokers, including the broker claiming a lien under this subtitle.

(g) "Commercial leasing commission" or "commission" means the compensation payable by the owner of commercial property to a broker for obtaining a commercial tenant under a commercial leasing brokerage agreement.

(h) "Commercial property" means land, and any improvements on the land, used or intended to be used for a nonresidential purpose.

(i) "Commercial tenant" means a tenant under a commercial lease.

(j) "Lien property" means the commercial property against which a broker's lien is claimed or against which a broker's lien has attached under this subtitle.

(k) "Owner" means the owner of the commercial property.

#### Section 14-302

(a) If a broker is not paid a commission according to the terms of a commercial leasing brokerage agreement, the broker shall be entitled to a lien under this subtitle for the unpaid portion of the commission.

(b)

  (1) A broker's lien established under this subtitle shall:

    (i) Subject to subparagraph (ii) of this paragraph, have priority over all liens of every kind perfected against the lien property after the issuance of an interlocutory order or the final order of the court under Sec. 14-305 of this subtitle;

    (ii) Be subordinate to a mechanics' lien established under Title 9 of this article, and perfected subsequent to the broker's lien if the mechanics' lien relates back to a date when work was performed or materials were furnished and that date is prior to the issuance of an interlocutory order or the final order of the court under Sec. 14-305 of this subtitle;

    (iii) Be subordinate to all liens perfected prior to the issuance of an interlocutory order or the final order of the court under Sec. 14-305 of this subtitle, notwithstanding that the holder of a prior perfected lien had knowledge of the broker's unfiled commission claim at the time of perfection; and

    (iv) Be subordinate to all other liens which are otherwise paramount to the broker's lien by operation of law.

  (2)

    (i) A commercial property may not be subjected to a broker's lien under this subtitle if, prior to the establishment of the broker's lien, legal title has been granted to a bona fide purchaser for value.

    (ii) The filing of a petition under Sec. 14-304 of this subtitle shall constitute notice to a purchaser of the possibility of a broker's lien perfected under this subtitle.

#### Section 14-303

A lien established in accordance with this subtitle shall extend to the land covered by the building and to as much other land, immediately adjacent and belonging in like manner to the owner of the building, as may be necessary for the ordinary and useful purposes of the building.

#### Section 14-304

(a) To establish a broker's lien under this subtitle, a broker shall commence proceedings in the circuit court where the commercial property is located within 180 days after the commercial leasing commission became due and payable by filing with the clerk of the court:

  (1) A petition to establish a broker's lien, which shall contain the following:

    (i) The name and address of the petitioner;

    (ii) The name and address of the owner;

    (iii) A copy of the brokerage agreement;

    (iv) A description of the lien property, including a statement whether part of the lien property is located in another county, by:

      (1) Reasonably specific geographic location;

      (2) Street address; or

      (3) Legal description from the deed as recorded among the land records; and

    (v) The amount of the commission and the unpaid portion of the commission;

  (2) An affidavit by the broker or by an individual on behalf of the broker stating the facts which the broker is claiming a broker's lien against the lien property in the amount specified; and

  (3) Either original or sworn, certified or photostatic copies of all material papers or parts of any material papers, if any, which constitute the basis of the broker's claim for a lien, unless the absence of any material papers or parts of any material papers is explained in the affidavit.

(b) The clerk shall docket the proceedings as an action in equity, and all process shall issue out of and all pleadings shall be filed in the one action.

#### Section 14-305

(a)

  (1) When a petition to establish a broker's lien is filed, the court shall review the pleadings and documents on file and may require the petitioner to supplement or explain any matters set forth in the petition, pleadings, or documents.

  (2) If the court determines that the lien should attach, it shall pass an order that:

    (i) Directs the owner to show cause within 15 days from the date of service on the owner of a copy of the order, together with copies of the pleadings and documents on file, why a broker's lien on the lien property and for the amount described in the petition should not attach; and

    (ii) Informs the owner that:

      (1) The owner may appear at the time stated in the order and present evidence on the owner's behalf or may file a counter-affidavit at or before that time; and

      (2) If the owner fails to appear and present evidence or file a counter-affidavit, the facts in the affidavit supporting the petitioner's claim shall be deemed admitted and a broker's lien may attach to the lien property as described in the petition.

  (3)

    (i) If the owner desires to controvert any statement of fact contained in the affidavit supporting the petitioner's claim, the owner shall file an affidavit in support of the owner's answer showing cause.

    (ii) The failure of the owner to file an opposing affidavit shall constitute an admission for the purposes of the proceedings of all statements of facts in the affidavit supporting the petitioner's claim, but shall not constitute an admission that a broker's petition or affidavit in support of the broker's petition is legally sufficient.

  (4) After the filing of an answer showing cause why a broker's lien should not be established in the amount claimed, the court shall schedule a hearing at the earliest possible time.

(b)

  (1)

    (i) If the pleadings, affidavits, and admissions on file and the evidence, if any, show that there is no genuine dispute as to any material fact and that the lien should attach as a matter of law, then the court shall issue a final order establishing the lien for want of any cause shown to the contrary.

    (ii) If it appears that there is no genuine dispute as to any portion of the broker's lien claim, then the validity of that portion shall be established and the action shall proceed only on the disputed amount of the broker's lien claim.

  (2) If the pleadings, affidavits, and admissions on file and the evidence, if any, show that there is no genuine dispute as to any material fact and that the petitioner failed to establish the broker's right to a broker's lien as a matter of law, then the court shall issue a final order denying the lien for cause shown.

  (3) If the court determines from the pleadings, affidavits, and admissions on file and the evidence, if any, that the broker's lien should not attach, or should not attach in the amount claimed, as a matter of law, by any final order, but that there is probable cause to believe that the petitioner is entitled to a broker's lien, the court shall enter an interlocutory order which:

    (i) Establishes the broker's lien;

    (ii) Describes the lien property to which the broker's lien attaches;

    (iii) States the amount of the claim for which probable cause is found;

    (iv) Specifies the amount of the bond that the owner may file to have the lien property released from the broker's lien;

    (v) May require the claimant to file a bond in an amount that the court believes sufficient for damages, including reasonable attorney's fees; and

    (vi) Assigns a date for the trial of all matters at issue in the action, which shall be within a period of 6 months.

  (4) The owner or any other person interested in the lien property may move to have the broker's lien established by the interlocutory order modified or dissolved at any time.

(c)

  (1) The amount of and the surety on any bond shall be determined and approved in accordance with the Maryland Rules except as stated in this subtitle.

  (2)

    (i) If the petitioner, or any other person interested in the lien property, is not satisfied with the sufficiency of a surety or with the amount of any bond given, the petitioner, or any other person interested in the lien property may, at any time before entry of a final decree, apply to the court for an order requiring an additional bond.

    (ii) After notice to the other parties involved, the court may order the giving of an additional bond as it may deem proper.

  (3) Instead of filing a bond, any party may deposit money in an amount equal to the amount of the bond which would otherwise be required, in accordance with the Maryland Rules.

(d) Until a final order is entered either establishing or denying the broker's lien, the action shall proceed to trial on all matters at issue, as in the case of any other proceedings in equity.

#### Section 14-306

(a) If any part of the lien property is located within another county and the petitioner desires that the broker's lien attach to the lien property in that county, the petitioner shall file a certified copy of the docket entries, the court order, and any required bond with the clerk of the circuit court for that county.

(b) A broker's lien attaches to the lien property in a county at the time the documents required to be filed under subsection (a) of this section are filed with the clerk of the circuit court of that county.

#### Section 14-307

(a) Subject to subsection (b) of this section, if all or any part of the lien property against which a broker's lien has been established under this subtitle is to be sold under a foreclosure or a judgment, execution or any other court order, all liens and encumbrances on the lien property that are subordinate to the lien with respect to which the property is sold shall be satisfied in accordance with their priority.

(b)

  (1) If the proceeds of the sale are insufficient to satisfy all broker's liens established under this subtitle, then all proceeds available to satisfy each broker's lien shall be stated by the court auditor as one fund.

  (2) The amount to be disbursed to satisfy each broker's lien established under this subtitle shall bear the same proportion to that fund as the amount of each broker's lien bears to the total amount secured by all broker's liens, without regard to priority among the broker's liens.

#### Section 14-308

(a) A broker's lien established under this subtitle may be enforced to the same extent as a judgment under the Maryland Rules, including a judicial sale of the lien property to satisfy the amount of the broker's lien.

(b)

  (1) The right to enforce any broker's lien under this subtitle expires at the end of 1 year from the day on which the petition to establish the broker's lien was first filed.

  (2) During the 1-year period the claimant may file a petition in the broker's lien proceedings to enforce the lien or to execute on any bond given to obtain a release of the lien property from the broker's lien.

  (3) If a petition to enforce the lien is filed within the 1-year period, the right to a broker's lien or the broker's lien, or any bond given to obtain a release of the broker's lien, shall remain in full force and effect until the conclusion of the enforcement proceedings and after the conclusion of the enforcement proceedings in accordance with the decree entered in the case.

#### Section 14-309

Nothing in this subtitle affects the right of any broker, to whom a commercial leasing commission is due and payable under a commercial leasing brokerage agreement, to maintain any personal action against the owner of commercial property or any other person for the commission due and payable.

#### Section 14-310

(a) This law is remedial and shall be so construed to give effect to its purpose.

(b)

  (1) Any amendment shall be made in the proceedings, commencing with the claim or broker's lien to be filed and extending to all subsequent proceedings, as may be necessary or proper.

  (2) The amount of the claim or broker's lien filed may not be enlarged by amendment.

#### Section 14-311

(a) A commercial leasing brokerage agreement between a broker and an owner may not waive or require the broker to waive the right to claim or establish a broker's lien.

(b) Any waiver provision made in a commercial leasing brokerage agreement or any other contract, express or implied, between a broker and an owner made in violation of this section is void as a matter of public policy.

#### Section 14-312

(a) At the time of any settlement or payment in full between a broker and an owner, the broker shall give to the owner a signed release of the broker's lien established under this subtitle.

(b) An owner is not subject to a lien and is not otherwise liable for any commission included in the release under subsection (a) of this section.

#### Section 14-313

Subject to the provisions of this subtitle, an action to establish and enforce a broker's lien under this subtitle, and all proceedings held under this subtitle, shall be in accordance with the Maryland Rules applicable to the establishment and enforcement of a mechanics' lien under Title 9 of this article.

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Md. Code Ann., Real Prop. (as displayed at mgaleg.maryland.gov, October 16, 2026)