An owner or tenant may sue a broker, and the court must discharge the broker’s lien if the broker missed certain lien-related deadlines or failed to comply with required notice. The court may also award damages and, in some cases, a civil penalty.
Sec. 62.141. OWNER'S OR TENANT'S REMEDIES. (a) An owner or tenant may file suit against a broker under this chapter. (b) In an action filed under this section, the court shall discharge a broker's lien if the broker: (1) failed to mail a copy of the notice of lien within the period prescribed by Section 62.026; (2) failed to execute, acknowledge, and return a subordination agreement within the period prescribed by Section 62.029(d); (3) failed to record the notice of lien within the period prescribed by Section 62.041; or (4) failed to release a lien within the period prescribed by Section 62.081. (c) A broker is liable to an owner or tenant for damages as provided by Subsection (d) if: (1) the broker recorded a lien on the commercial real estate interest of the owner or tenant; (2) the broker failed to: (A) execute, acknowledge, and return a subordination agreement within the period prescribed by Section 62.029(d); or (B) release a lien within the period prescribed by Section 62.081; (3) the owner, tenant, or escrow agent mailed to the broker by certified mail, return receipt requested, a copy of this section and a notice requesting the broker to execute, acknowledge, and return the subordination agreement or release the lien not later than the 10th day after the date the broker receives the notice; and (4) the broker failed to comply with the owner's, tenant's, or escrow agent's written notice within the prescribed period. (d) If the court finds that a broker is liable to an owner or tenant under Subsection (c), the court may award the owner or tenant: (1) actual damages, including attorney's fees and court costs, incurred by the owner or tenant that are proximately caused by the broker's failure to execute, acknowledge, and return the subordination agreement or release the lien; and (2) a civil penalty in an amount not to exceed three times the amount of the claimed commission if the court finds that the broker acted with gross negligence or acted in bad faith in violation of Chapter 1101, Occupations Code. (e) This section does not prevent: (1) a person from filing a complaint with the Texas Real Estate Commission against a broker who fails to comply with this chapter; or (2) the Texas Real Estate Commission at any time from investigating or initiating a disciplinary proceeding against a broker who fails to comply with this chapter. Added by Acts 1999, 76th Leg., ch. 1571, Sec. 1, eff. Aug. 30, 1999. Amended by Acts 2003, 78th Leg., ch. 1276, Sec. 14A.804, eff. Sept. 1, 2003.