What is a "broker's lien"?

A broker's lien is indeed a claim allowing brokers to collect unpaid fees. It serves as a legal remedy that enables real estate brokers to assert a right to receive payment for their services in the sale or lease of a property. This lien can be placed against the property involved in the transaction and protects brokers by ensuring that they are compensated for their efforts, even if there are disputes over payment from the client.

In real estate transactions, brokers often invest significant time and resources. If a client fails to pay the agreed-upon fees, the broker can file a lien against the property to secure their right to receive those fees. This provides a level of financial security for brokers in their business transactions.

The other options discuss different concepts within real estate. A penalty for violating regulations pertains to disciplinary actions rather than financial claims. A formal document establishing property ownership refers to deeds or titles, which do not link directly to broker compensation. Lastly, a notice to vacate involves tenant and landlord relationships and does not relate to broker fees or liens. Understanding these distinctions helps clarify why the correct answer is focused on the financial aspect of brokers' rights.