What does the Commercial Real Estate Sales Commission Lien Act provide in a commercial sale?

• A. It presumes a lien against the seller's net sales proceeds upon performance by the broker under a written listing contract; must be disclosed; lien release must be recorded within 7 days after receipt of commission payment.
• B. It prohibits any lien against a seller's net proceeds.
• C. It applies only to residential properties.
• D. It requires the broker to refund any commission if the sale does not close.

Answer: (D)

The main idea this question tests is what remedy the Commercial Real Estate Sales Commission Lien Act provides if a commercial sale doesn’t close. The act is about ensuring fairness when a deal falls through: since a broker typically earns the commission at closing, if there’s no closing, the broker should not keep the fee. That’s why the core requirement is that the broker must refund any commission if the sale does not close. This protects the seller from paying for a failed transaction and clarifies that earned compensation follows a successful closing.

The other ideas don’t fit this specific remedy. The act isn’t about imposing a lien on the seller’s net proceeds in this context, it isn’t limited to residential properties, and it doesn’t establish an obligation to refund simply as a matter of performance without a closing.