Amend HB 1052 by striking all below the enacting clause and
substituting the following:
      SECTION ____.  Subtitle B, Title 5, Property Code, is amended
by adding Chapter 62 to read as follows:
     CHAPTER 62.  BROKER'S AND APPRAISER'S LIEN ON COMMERCIAL
                            REAL ESTATE
                 SUBCHAPTER A.  GENERAL PROVISIONS
      Sec. 62.001.  SHORT TITLE. This chapter may be cited as the
Broker's and Appraiser's Lien on Commercial Real Estate Act.
      Sec. 62.002.  APPLICABILITY. (a)  This chapter applies only
to real estate that is commercial real estate on the date the
notice of lien is filed under this chapter.
      (b)  This chapter does not apply to:
            (1)  a transaction involving a claim for a commission
of $2,500 or less in the aggregate; or
            (2)  a transaction for the sale of commercial real
estate involving a claim for a commission of $5,000 or less in the
aggregate if the commercial real estate:
                  (A)  is the principal place of business of the
record title owner;
                  (B)  is occupied by more than one and fewer than
five tenants; and
                  (C)  is improved with 7,500 square feet or less
of total gross building area.
      Sec. 62.003.  DEFINITIONS. In this chapter:
            (1)  "Broker" means a person who:
                  (A)  is licensed as a real estate broker under
The Real Estate License Act (Article 6573a, Vernon's Texas Civil
Statutes) and is not acting as a residential rental locator as
defined by Section 24, The Real Estate License Act (Article 6573a,
Vernon's Texas Civil Statutes); or
                  (B)  is licensed or certified as a real estate
appraiser under the Texas Appraiser Licensing and Certification Act
(Article 6573a.2, Vernon's Texas Civil Statutes).
            (2)  "Commercial real estate" means all real estate
except:
                  (A)  real estate improved with one to four
residential units;
                  (B)  a single-family residential unit, including
a condominium, townhouse, or home in a subdivision, if the unit is
sold, leased, or otherwise conveyed on a unit-by-unit basis and
regardless of whether the unit is part of a larger building or
located on real estate containing more than four residential units;
                  (C)  real estate that is or includes on the real
estate a person's homestead;
                  (D)  real estate that is not improved with a
structure and is:
                        (i)  zoned for single-family residential
use; or
                        (ii)  restricted for single-family use
under restrictive covenants that will remain in effect for at least
the next two years; or
                  (E)  real estate that:
                        (i)  is primarily used for farming and
ranching purposes;
                        (ii)  will continue to be used primarily
for farming and ranching purposes; and
                        (iii)  is located more than three miles
from the corporate boundaries of any municipality.
            (3)  "Commission" includes a fee or other valuable
consideration.
            (4)  "Commission agreement" means a written instrument
that:
                  (A)  entitles a broker to a commission;
                  (B)  is signed by the person obligated to pay the
commission or that person's authorized agent;
                  (C)  references the commission amount or
describes the formula used to determine the commission amount; and
                  (D)  contains a description legally sufficient
for identification of the real estate interest that is the subject
of the agreement if the person obligated to pay the commission is a
seller or lessor.
            (5)  "Deferred commission" means a commission that is
earned and is not yet payable.
            (6)  "Real estate" has the meaning assigned by Section
2, The Real Estate License Act (Article 6573a, Vernon's Texas Civil
Statutes).
      Sec. 62.004.  PAYABLE COMMISSION AND EARNED COMMISSION. (a)
A commission is payable at the time provided in the commission
agreement.  If payment of the commission is conditioned on the
occurrence of an event and that event does not occur, the person
obligated to pay the commission is not required to pay the
commission.
      (b)  Except as provided by Subsection (c), a commission is
earned on the earlier of the date that:
            (1)  an event occurs that, under the commission
agreement, defines when the commission is earned; or
            (2)  the person obligated to pay the commission enters
into a purchase contract or a lease during the period prescribed by
the commission agreement for all or part of the commercial real
estate if the purchase contract or lease is contemplated by the
commission agreement and if the parties to the purchase contract or
lease are contemplated by the commission agreement.
      (c)  If a broker has earned a commission under a commission
agreement relating to a lease transaction and the commission
agreement provides that the broker may receive an additional
commission when the lease is modified to expand the lease space or
renewed, the additional commission is earned when:
            (1)  the broker performs all the additional services
relating to the lease modification or renewal expressly prescribed
by the commission agreement; or
            (2)  the broker first earned a commission under the
commission agreement if the commission agreement does not expressly
require the broker to perform additional services relating to a
lease modification or renewal.
      Sec. 62.005.  BROKER'S ADDRESS FOR RECEIPT OF NOTICE. A
seller, lessor, buyer, or tenant shall send any notice required to
be sent to the broker under this chapter to the broker:
            (1)  at the broker's address as reflected in the
records of the Texas Real Estate Commission; and
            (2)  at the broker's last address that the broker
furnished the seller, lessor, buyer, or tenant by certified mail,
return receipt requested, if the broker's license is expired.
          Sections 62.006-62.020 reserved for expansion
                   SUBCHAPTER B.  BROKER'S LIEN
      Sec. 62.021.  PERSON ENTITLED TO LIEN. (a)  A broker has a
lien on a seller's or lessor's commercial real estate interest in
the amount specified by the commission agreement if:
            (1)  the broker has earned a commission under a
commission agreement signed by the seller or lessor of the
commercial real estate interest or the seller's or lessor's
authorized agent; and
            (2)  a notice of lien is recorded and indexed as
provided by Section 62.024.
      (b)  A broker has a lien on the commercial real estate
interest purchased by a prospective buyer in the amount specified
by the commission agreement if:
            (1)  the broker has earned a commission under a
commission agreement signed by the prospective buyer of the
commercial real estate interest or the prospective buyer's
authorized agent; and
            (2)  a notice of lien is recorded and indexed as
provided by Section 62.024.
      (c)  A broker has a lien on the leasehold interest in the
commercial real estate that a prospective tenant leases in the
amount specified by the commission agreement if:
            (1)  the broker has earned a commission under a
commission agreement signed by the prospective tenant of the
commercial real estate interest or the prospective tenant's
authorized agent; and
            (2)  a notice of lien is recorded and indexed as
provided by Section 62.024.
      (d)  A lien described by this section is available only to
the broker named in the commission agreement. The lien is not
available to an employee or independent contractor of the broker.
      (e)  The broker's right to claim a lien based on the
commission agreement must be disclosed in the commission agreement.
      Sec. 62.022.  WAIVER, RELEASE, OR DISCHARGE OF LIEN;
ASSUMPTION OF COMMISSION OBLIGATION. (a)  Except as provided by
Subsection (b), the waiver of a broker's right to a lien under this
chapter, or a release given for the purpose of releasing the
broker's lien before the commission is satisfied or forgiven, is
void.
      (b)  A broker's entitlement to a lien on the interest of an
owner or tenant in commercial real estate shall be automatically
waived if:
            (1)  the commission is earned and payable for services
provided relating to a lease transaction; and
            (2)  the commission agreement is included as a
provision of the lease agreement.
      (c)  A lien under this chapter is discharged by:
            (1)  a court order discharging the lien;
            (2)  paying the commission to the broker named in the
commission agreement; or
            (3)  establishing an escrow account described by
Subchapter F.
      (d)  A person who assumes an owner's or tenant's commercial
real estate interest is bound by a commission agreement included in
a lease agreement unless an escrow account is established under
Subchapter F or a bond is provided under Subchapter G.
      (e)  This section does not affect the rights of a mortgagee
who forecloses on commercial real estate and does not assume the
lease on which a commission agreement is based.
      Sec. 62.023.  AFFIDAVIT IDENTIFYING BROKER. If requested by
the buyer, the buyer's authorized agent, or the escrow agent for
the commercial real estate transaction, the seller of commercial
real estate and the broker representing the seller shall provide to
the requesting party before the closing of the transaction a
written affidavit identifying each broker with whom the affiant
knows or believes the seller or the seller's authorized agent has
signed a commission agreement under which a commission is claimed
or earned and has not been paid.
      Sec. 62.024.  FILING OF NOTICE OF LIEN. (a)  A broker
claiming a lien under this chapter may not file a notice of lien
unless the commission on which the lien is based is earned.
      (b)  A broker claiming a lien under this chapter must file a
notice of lien as provided by Subchapter C with the county clerk of
the county in which the commercial real estate is located.
      (c)  The county clerk shall record the notice of lien in
records kept for that purpose and shall index and cross-index the
notice of lien in the names of the broker, each person obligated to
pay the commission under the commission agreement, and each person
who owns an interest in the commercial real estate if the broker
claims a lien on that interest.
      Sec. 62.025.  CONTENTS OF NOTICE OF LIEN. The notice of lien
must be signed by the broker or by a person authorized to sign on
behalf of the broker and must contain the following:
            (1)  a sworn statement of the nature and amount of the
claim, including:
                  (A)  the commission amount or the formula used to
determine the commission;
                  (B)  the type of commission at issue, including a
deferred commission; and
                  (C)  the month and year in which the commission
was earned;
            (2)  the name of the broker and the real estate license
number of the broker;
            (3)  the name as reflected in the broker's records of
any person who the broker believes is obligated to pay the
commission under the commission agreement;
            (4)  the name as reflected in the broker's records of
any person the broker believes to be an owner of the commercial
real estate interest on which the lien is claimed;
            (5)  a description legally sufficient for
identification of the commercial real estate interest sought to be
charged with the lien;
            (6)  the name of any cooperating broker or principal in
the transaction with whom the broker intends to share the
commission and the dollar or percentage amount to be shared; and
            (7)  a copy of the commission agreement on which the
lien is based.
      Sec. 62.026.  NOTICE OF FILING. (a)  In this section,
"business day" means a day other than a Saturday, Sunday, or
holiday recognized by this state.
      (b)  Not later than one business day after the date the
broker files a notice of lien, the broker shall mail a copy of the
notice of lien by certified mail, return receipt requested, or
registered mail to:
            (1)  the owner of record of the commercial real estate
interest on which the lien is claimed or the owner's authorized
agent; and
            (2)  the prospective buyer or tenant and any escrow
agent named in a contract for the sale or lease of the commercial
real estate interest on which the lien is claimed if:
                  (A)  a binding written contract for the sale or
lease of the commercial real estate interest is in effect between
the owner and the prospective buyer or tenant in a transaction that
is the basis for the commission; and
                  (B)  the binding written contract was executed by
the owner and the prospective buyer or tenant before the date the
notice of lien is filed.
      (c)  Service of the notice under Subsection (b) is complete
when the notice is deposited in the United States mail, postage
prepaid, and addressed to the persons entitled to receive the
notice under this section.
      (d)  If the broker has actual knowledge of the identity of
the escrow agent named in the contract for the sale or lease of the
commercial real estate interest on which the broker claims a lien
or of the escrow agent otherwise closing the sale or lease of the
commercial real estate interest, the broker, before the first
business day before the date that the sale or lease is closed on
commercial real estate for which a notice of lien is filed, shall
deliver a file-stamped copy or transmit a facsimile of a
file-stamped copy of the notice of lien to each escrow agent at the
office in which the closing of the sale or lease will occur for use
during the closing of the sale or lease.  The broker shall deliver
the copy or transmit the facsimile directly to the individual
escrow agent responsible for closing the sale or lease if the
broker knows that person's name.
      (e)  If the escrow agent receives the notice of lien, the
escrow agent and other parties to the sale or lease may not close
the transaction unless the lien is released, the prospective buyer
or tenant purchases or leases the property subject to the lien, the
funds are held in escrow as provided by Subchapter F, or a bond is
filed as provided by Subchapter G.
      (f)  If the broker fails to comply with this section, the
notice of lien is void.
      Sec. 62.027.  INCEPTION OF BROKER'S LIEN. (a)  A broker's
lien attaches to the commercial real estate interest owned by the
person obligated to pay the commission on the date the notice of
lien is recorded as provided by this chapter.  The lien does not
relate back to the date of the commission agreement.
      (b)  A notice of lien for amounts earned by the broker under
an installment contract or under a commission agreement for a
deferred commission is enforceable only to the extent that the
installment or commission has become payable.
      Sec. 62.028.  PRIORITY. (a)  A recorded lien, mortgage, or
other encumbrance on commercial real estate, including a recorded
lien securing revolving credit and future advances for a loan,
recorded before the date a broker's lien is recorded has priority
over the broker's lien.
      (b)  A broker's lien on the commercial real estate interest
of a person obligated to pay a commission is not valid or
enforceable against a grantee, buyer, lessee, or transferee of the
interest of the person obligated to pay the commission if the deed,
lease, or instrument transferring the interest is recorded before
the notice of the broker's lien is recorded.
      (c)  A purchase-money mortgage lien executed by the buyer of
the commercial real estate interest has priority over a broker's
lien claimed for the commission owed by the buyer against the
commercial real estate interest purchased by the buyer.
      (d)  A mechanic's lien that is recorded after a broker's lien
and that relates back to a date before the date the broker's lien
is recorded has priority over the broker's lien.
      Sec. 62.029.  SUBORDINATION. (a)  If the person obligated to
pay the commission sells that person's commercial real estate
interest, the broker's lien is subordinate to a recorded
purchase-money first lien authorized by the buyer if the buyer:
            (1)  executes and files with the county clerk of the
county in which the broker's lien is filed a memorandum that
evidences the buyer's acknowledgment of the existence of the
broker's lien; and
            (2)  sends the broker, by certified mail, return
receipt requested, or registered mail, a copy of the recorded
memorandum required by this subsection.
      (b)  If the person obligated to pay the commission refinances
a recorded first lien secured by that person's commercial real
estate interest, the broker's lien is subordinate to the recorded
refinanced first lien, regardless of the amount of the first lien
after refinancing, if the person obligated to pay the commission:
            (1)  executes and files with the county clerk of the
county in which the broker's lien is filed a memorandum that
evidences the person's acknowledgment of the existence of the
broker's lien; and
            (2)  sends the broker, by certified mail, return
receipt requested, or registered mail, a copy of the recorded
memorandum required by this subsection.
      (c)  If the person obligated to pay the commission obtains an
extension of credit secured by that person's commercial real estate
interest, the broker's lien is subordinate to the lien securing the
extension of credit if, according to the loan documents, the
extension of credit is made only for the purpose of:
            (1)  repairing or renovating the commercial real
estate; or
            (2)  completing construction or providing additional
improvements on the commercial real estate.
      (d)  If the person obligated to pay the commission furnishes
a subordination agreement as provided by this section to be
executed by the broker, the broker must:
            (1)  execute and acknowledge the subordination
agreement before a notary public; and
            (2)  return the subordination agreement to the person
not later than the seventh day after the date the broker receives
the subordination agreement and other documents the broker
reasonably requests in order to determine that the subordination
agreement complies with this section.
      Sec. 62.030.  MIXED-USE REAL ESTATE. If real estate is zoned
or restricted for more than one use, the broker's lien attaches
only to the portions of the real estate that constitute commercial
real estate.
      Sec. 62.031.  CHANGE IN USE OF REAL ESTATE. (a)  Except as
provided by Subsection (b), any change in the use of the real
estate does not affect a broker's lien if the notice of the lien
was filed when the real estate was commercial real estate.
      (b)  The broker's lien is extinguished if:
            (1)  not later than the 360th day after the date on
which the broker's commission is payable, the commercial real
estate interest on which a broker claims a lien is zoned for
single-family use or restricted for single-family use under
recorded restrictive covenants; and
            (2)  the zoning ordinances or restrictive covenants for
single-family use are in effect until at least the second
anniversary of the date the commission is payable.
          Sections 62.032-62.040 reserved for expansion
           SUBCHAPTER C.  TIME FOR FILING NOTICE OF LIEN
      Sec. 62.041.  TIME TO FILE. (a)  If a broker has earned a
commission under a commission agreement signed by a seller or the
seller's authorized agent, a broker must record a notice of lien:
            (1)  after the commission is earned; and
            (2)  before the conveyance of the commercial real
estate interest on which the broker is claiming a lien.
      (b)  If a broker has earned a commission under a commission
agreement signed by a prospective buyer or a prospective buyer's
authorized agent, the broker must record a notice of lien:
            (1)  after the buyer acquires legal title to the
commercial real estate interest on which the broker is claiming a
lien; and
            (2)  before the buyer conveys the buyer's commercial
real estate interest on which the broker is claiming a lien.
      (c)  If the lien is based on a lease transaction, the broker
must record a notice of lien after the commission is earned and
before the earlier of:
            (1)  the 91st day after the date the event for which
the commission becomes payable occurs; or
            (2)  the date the person obligated to pay the
commission records a subsequent conveyance of that person's
commercial real estate interest after executing the lease agreement
relating to the lease transaction for which the lien is claimed.
      (d)  If a notice of lien is not filed within the time
required by this section, the lien is void.
          Sections 62.042-62.060 reserved for expansion
                SUBCHAPTER D.  ENFORCEMENT OF LIEN
      Sec. 62.061.  SUIT TO FORECLOSE LIEN. (a) A broker may not
bring a suit to foreclose a lien under this chapter unless the
commission is earned and payable.  A broker may bring a suit to
foreclose a lien in any district court for the county in which the
commercial real estate is located by filing a sworn complaint
stating that the notice of lien has been recorded.
      (b)  A complaint in a suit filed under this section must
contain:
            (1)  a brief description of the commission agreement
that is the basis for the lien, including:
                  (A)  a description of the disclosure of the
broker's right to the lien contained in the commission agreement;
                  (B)  the date on which the commission agreement
was executed;
                  (C)  the event for which a commission is
considered to be earned; and
                  (D)  the event for which a commission is
considered to be payable;
            (2)  a description of the services performed by the
broker;
            (3)  the amount of the payable commission that is
unpaid;
            (4)  a description of the commercial real estate to
which the lien attaches; and
            (5)  other facts necessary for a full understanding of
the rights of the parties.
      (c)  The broker must include as a defendant in a suit brought
under this subchapter each person the broker believes to have an
interest in the commercial real estate that is subordinate to or
encumbered by the broker's lien.
      (d)  If the broker and a person against whom the broker
claims a commission use alternative dispute resolution procedures
to resolve a dispute concerning entitlement to the broker's
commission, the broker's lien remains valid, and any suit to
foreclose the lien is stayed until the alternative dispute
resolution process is completed.
      Sec. 62.062.  STATUTE OF LIMITATIONS. (a)  Except as provided
by this section, a broker claiming a lien under this chapter must
bring a suit to foreclose the lien on or before the second
anniversary of the date the notice of lien is recorded.
      (b)  A broker claiming a lien to collect a deferred
commission must bring a suit to foreclose the lien on or before the
earlier of:
            (1)  the second anniversary of the date on which the
commission is payable; or
            (2)  the 10th anniversary of the date the lien is
recorded or the 10th anniversary of the date the broker records a
subsequent notice of the lien as a renewal of the broker's right to
the lien, whichever date is later.
      (c)  A renewal of a notice of lien must state that it is a
renewal of the broker's lien and must be recorded after the ninth
anniversary after the date the original notice of lien or last
renewal notice is recorded and on or before the 10th anniversary of
the date the original notice of lien or last renewal notice is
recorded.
      (d)  A broker claiming a lien for a commission that is
payable must bring a suit to foreclose the lien not later than the
30th day after the date the broker receives a written demand to
bring a suit to foreclose the lien from the owner of the commercial
real estate interest on which the lien is claimed.
      (e)  If a suit to foreclose the lien is not brought within
the period prescribed by this section, the lien is void.
      Sec. 62.063.  ASSESSMENT OF COSTS, FEES, AND INTEREST. The
prevailing party in a suit brought under this subchapter is
entitled to court costs, reasonable attorney's fees, and
prejudgment interest from the date the commission becomes payable
or the date the damage accrues.
          Sections 62.064-62.080 reserved for expansion
                  SUBCHAPTER E.  RELEASE OF LIEN
      Sec. 62.081.  RELEASE OF LIEN. (a)  Not later than the fifth
day after the date a broker receives a written request from the
owner of a commercial real estate interest on which a lien is
claimed, the broker shall furnish to the owner a release of
indebtedness and any lien claimed if:
            (1)  the debt that is the basis for the lien is
satisfied; or
            (2)  the lien is discharged under Section 62.022,
rendered void under Section 62.026 or 62.062, or extinguished under
Section 62.031.
      (b)  When a condition occurs that would preclude the broker
from receiving a commission under the terms of the commission
agreement that is the basis for the lien, the broker shall, not
later than the 10th day after the date the broker receives a
written request from the owner of the commercial real estate
interest on which the lien is claimed, furnish to the owner a
release of indebtedness and any lien claimed.
      (c)  Not later than the 10th day after the date a broker
receives a written request for the release of the broker's lien
from the escrow agent responsible  for closing the purchase and
sale of a commercial real estate interest on which the lien is
claimed, the broker shall furnish to the escrow agent a release of
indebtedness and any lien claimed if:
            (1)  the commercial real estate interest to which the
lien attaches is subject to a contract for purchase and sale;
            (2)  the release of indebtedness and any lien claimed
is conditioned on the closing of the transaction; and
            (3)  the broker would otherwise be obligated to release
the indebtedness and any lien claimed under Subsection (a) or (b)
on the closing of the transaction.
      (d)  A release of lien must be in a form that permits the
instrument to be filed of record.
          Sections 62.082-62.100 reserved for expansion
             SUBCHAPTER F.  ESCROW OF DISPUTED AMOUNTS
      Sec. 62.101.  ESCROW ACCOUNT. If a claim for a lien under a
recorded notice of lien is not paid or assumed at the closing of a
sale, lease, or mortgage of the commercial real estate interest
subject to the lien and would prevent the closing of the
transaction or conveyance or if a claim for a lien under a recorded
notice of lien does not survive the closing, any person named in
the notice of lien as obligated to pay the commission shall, on the
date of the closing:
            (1)  establish an escrow account from any net proceeds
of the transaction or conveyance in an amount equal to the amount
sufficient to satisfy the lien plus 15 percent of that amount; or
            (2)  file a bond to indemnify against the lien as
provided by Subchapter G.
      Sec. 62.102.  NAMED ESCROW AGENT. If an escrow agent is named
in the contract on which the transaction or conveyance is based,
the escrow account shall be established with the named escrow
agent.
      Sec. 62.103.  COSTS OF INTERPLEADER. Related costs for any
interpleader action may be deducted from the escrow account by the
person maintaining the escrow account.
      Sec. 62.104.  REFUSAL TO ESTABLISH ESCROW ACCOUNT OR BOND.
(a)  A party may not refuse to close a transaction because of the
requirement to establish an escrow account or bond as provided by
Section 62.101 if:
            (1)  the broker provides a copy of the notice of lien
that complies with Sections 62.025 and 62.026;
            (2)  sufficient proceeds will result from the proposed
transaction for the payment of the commission and costs of the
interpleader; and
            (3)  the broker executes and delivers a full  release
of the broker's lien in a recordable form.
      (b)  A prospective buyer of a commercial real estate interest
may not refuse to close the purchase solely because a broker's lien
is filed after the date a title commitment or abstract of title
relating to the interest is issued if an escrow account is
established as provided by this subchapter or a bond is filed as
provided by Subchapter G.
      Sec. 62.105.  TERM OF ESCROW ACCOUNT. The amount held in
escrow shall be held in escrow until:
            (1)  the rights of the parties claiming the amount in
escrow are determined by a written agreement of the parties, a
court order, or an alternative dispute resolution process agreed to
by the parties;
            (2)  the broker's lien is no longer enforceable; or
            (3)  the funds are interpled into a district court for
the county in which the commercial real estate is located.
      Sec. 62.106.  EXTINGUISHMENT OF LIEN UPON ESCROW. When the
escrow account is established under this subchapter, the broker's
lien against the commercial real estate is extinguished and becomes
a lien on the proceeds in the escrow account.
          Sections 62.107-62.120 reserved for expansion
           SUBCHAPTER G.  BOND TO INDEMNIFY AGAINST LIEN
      Sec. 62.121.  BOND. (a)  If a lien is fixed or is attempted
to be fixed by a recorded instrument under this chapter,  any
person may file a bond to indemnify against the lien.
      (b)  The bond shall be filed with the county clerk of the
county in which the commercial real estate subject to the lien is
located.
      Sec. 62.122.  BOND REQUIREMENTS. The bond must:
            (1)  describe the commercial real estate on which the
lien is claimed;
            (2)  refer to the lien claimed in a manner sufficient
to identify it;
            (3)  be in an amount that is double the amount of the
lien referred to in the bond as of the date of execution of the
bond by the surety, unless the total amount claimed in the lien
exceeds $40,000, in which case the bond must be in an amount that
is 1-1/2 times the amount of the lien;
            (4)  be payable to the party claiming the lien;
            (5)  be executed by:
                  (A)  the party filing the bond as principal; and
                  (B)  a corporate surety licensed by this state to
execute the bond as surety;
            (6)  be conditioned substantially that the principal
and sureties will pay the named obligees or their assignees the
amount that the named obligees would have been entitled to recover
if their claim had been proved to be valid and enforceable liens on
the commercial real estate; and
            (7)  identify the last known mailing address of the
person claiming the lien.
      Sec. 62.123.  NOTICE OF BOND. (a)  After the bond is filed,
the county clerk shall issue notice of the bond to all named
obligees.
      (b)  A copy of the bond must be attached to the notice.
      (c)  The notice must be served on each obligee by mailing a
copy of the notice and the bond to the obligee by certified mail,
return receipt requested, addressed to the claimant at the address
stated in the bond for the obligee.
      Sec. 62.124.  RECORDING OF BOND AND NOTICE. (a)  The county
clerk shall record the bond, the notice, and a certificate of
mailing in the real property records.
      (b)  In acquiring an interest in or insuring title to the
commercial real estate, a buyer, insurer of title, or lender may
rely on and is absolutely protected by the record of the bond and
the notice to the same extent as if the lien claimant had filed a
release of lien in the real property records.
      Sec. 62.125.  ACTION ON BOND. (a)  A party making or holding
a lien claim may not sue on the bond later than the last date on
which a person may bring a suit to foreclose the lien under Section
62.062.
      (b)  The bond is not exhausted by one action against it.
Each named obligee or assignee of an obligee may maintain a
separate suit on the bond in any district court for the county in
which the commercial real estate is located.
          Sections 62.126-62.140 reserved for expansion
                      SUBCHAPTER H.  REMEDIES
      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 The Real Estate License Act (Article 6573a, Vernon's
Texas Civil Statutes).
      (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.
      Sec. 62.142.  BROKER'S REMEDIES. (a)  A broker may file suit
against an owner or tenant to enforce a commission agreement.
      (b)  If the court finds that the broker waived the right to
file a lien under Section 62.022 and that the owner or tenant
violated the commission agreement, the court may award to the
broker:
            (1)  actual damages, including attorney's fees and
court costs, that are proximately caused by the owner's or tenant's
failure to comply with the commission agreement; 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 owner or tenant acted with gross negligence or in bad faith.
      SECTION ___. The change in law made by Chapter 62, Property
Code, as added by this Act, applies only to an agreement to
compensate a licensed real estate broker or appraiser that is
entered into on or after the effective date of this Act.