Agency

What is 'broker's lien' in Hawaii real estate and how does it protect agents?

AA. A lien brokers place on properties they list to ensure commission payment
BB. Hawaii does not recognize a common law broker's lien; brokers must use other legal remedies (breach of contract lawsuit) if sellers refuse to pay earned commissions✓ Correct
CC. A lien automatically placed on all sale proceeds in escrow until commission is paid
DD. A lien placed by the Real Estate Commission for unpaid license fees

Explanation

Hawaii does not recognize a statutory broker's lien on real property (unlike some other states). Real estate brokers who earn a commission and are refused payment must pursue breach of contract claims in court. Properly drafted listing agreements and cooperation agreements are the primary protection. Some states have enacted broker lien laws, but Hawaii has not.

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