Delaware Code Title 25 Sec. 2613 – Release or satisfaction of lien
(a) Whenever a notice of lien has been filed and a condition occurs that in good faith would preclude the broker from receiving compensation under the terms of the brokerage agreement, the broker shall provide to the record owner of the commercial real estate and the person who would have been liable for such payment, a written release or satisfaction of the broker’s lien.
Terms Used In Delaware Code Title 25 Sec. 2613
- Affidavit: A written statement of facts confirmed by the oath of the party making it, before a notary or officer having authority to administer oaths.
- Broker: means any individual who holds a broker license from the Delaware Real Estate Commission and who for a compensation or valuable consideration, is self-employed or is employed directly or indirectly by a brokerage organization to sell or offer to sell, or to buy or offer to buy, or to negotiate the purchase, sale, or exchange of real estate, or to lease or rent or offer for rent any real estate, or to negotiate leases or rental agreements thereof or of the improvements thereon for others. See Delaware Code Title 25 Sec. 2602
- Brokerage agreement: means any written agreement for the payment for brokerage services of a broker for the management, sale, purchase, lease, or other conveyance or acquisition of commercial real estate. See Delaware Code Title 25 Sec. 2602
- Commercial real estate: means any estate or interest owned in:
- Complaint: A written statement by the plaintiff stating the wrongs allegedly committed by the defendant.
- Lien: A claim against real or personal property in satisfaction of a debt.
- Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.
- Summons: Another word for subpoena used by the criminal justice system.
(b) The record owner, the person liable for payment to the broker pursuant to the brokerage agreement, or the holder of any lien against the commercial real estate may serve a demand on the broker who filed the affidavit and notice of broker’s lien requiring that suit be commenced to enforce the broker’s lien, a suit shall be commenced as provided in this chapter within 20 days, or the broker’s lien shall be deemed released and satisfied. Service of such demand shall be in the manner required for the service of a summons and complaint under the Rules of Civil Procedure of the Superior Court.
(c) Whenever a claim is paid for which an affidavit and notice of broker’s lien has been timely filed, or where there is failure to institute a suit to enforce the broker’s lien within the times provided by this chapter, or if the affidavit and notice of lien has not been continued as provided in this chapter, the broker’s lien shall be deemed released and satisfied and the broker shall file a satisfaction and release as provided in this chapter with the office of the recorder of deeds where the affidavit and notice of broker’s lien is filed and acknowledge release and satisfaction of the broker’s lien, in writing, on written demand of the record owner or the person who was liable for the payment pursuant to the brokerage agreement.
(d) A Delaware lawyer representing a party in a real estate settlement may require a broker who has been paid the full compensation due at settlement to execute a release or estoppels affidavit stating that no lien has been filed for the compensation that has been paid, no lien will be filed, and if a notice of lien was filed, that the broker authorizes the filing of a written release or satisfaction of the lien by the settlement attorney. Such release, whether signed by the broker or an associate broker or salesperson licensed under the broker, is binding upon the broker and brokerage organization and may be relied upon by the parties and title insurance company.