A real estate commission demand letter is an official document requesting a commission be paid to the salesperson for the sale of the property. The real estate commission demand letter is the first step to take when it comes to obtaining your commission. By writing this letter, you put yourself and your situation in a good position.
In other words, the letter states the issue and what the recipient has to do to fix the problem, avoiding costly litigation in the process. The real estate commission demand letter gets the conversation going. After all, perhaps there was a mix-up at the recipient’s office; perhaps records were mishandled. By sending the letter, you and the recipient have the opportunity to settle out of court.
How to Write a Real Estate Commission Demand Letter
Before you begin, it’s a good idea to take a piece of paper and write down the facts before you start, add and delete as you go along. Remember to not digress from the topic. Include only the information specific to your case.
Tip: keep in mind that the judge has no idea of what truly happened, so compose the letter from that perspective, being as specific as possible. Keep the tone professional. Never use negativity, bad words, or assumptions.
One of the more important concerns when composing your real estate commission demand letter is organization. The letter must present the facts in an organized way. We’ve given you a helping hand by dividing up the letter into three sections: An introduction, middle and end. Keep in mind that our examples are only guides. While the letter should be brief and concise, you are to use as many paragraphs that your particular case requires using short, simple sentences.
Paragraph One
The first paragraph is your introduction. Here, you’ll introduce certain elements central to your claim. In this case, you’ll begin by stating that it’s a real estate commission demand letter. Name the amount of the commission in question, and any names and/or dates.
Paragraph Two
The middle of the letter should contain the details listed in a chronological manner. If you include documents, then mention the name and type of each document. If you intend to follow up with legal action against the recipient unless you hear from them within a certain amount of days, say so here, and so on. Remember that if this does end up in court, the judge will be reading this letter, so keep that in mind as well.
Paragraph Three
This is the conclusion. Mention any contact information if you desire. You may also repeat that you will be taking this to court if you do not hear from the recipient, and they will be responsible for all court fees.
Tips
- Proofread and edit your content before signing
- Make several copies of the letter
- You may choose to have your lawyer sign, seal and deliver the letter
- If you are sending the letter by mail, send it by certified mail and obtain a receipt
- Keep the tone professional and positive
- Don’t be antagonistic
- Give them a deadline, such as two weeks or 30 days
Real Estate Commission Demand Letter Format
Dear {Name of Recipient}
This letter is to inform you, {Name of Recipient}, of the {Amount of Commission} commission payment due me, {Your Name}. This is considered an official request for the commission payment of {Amount of Commission} resulting from the sale of {Name and Address of Property Involved}. This sale occurred on {Date of Sale}.
All supporting documents relating to the sale and real estate commission owed me have been attached. I hereby inform you that if you do not act upon this official real state commission demand letter within 30 days of {Date of this Letter}, we will be forced to initiate legal proceedings, which will include your responsibility to pay all fees.
If you are having difficulty or any questions, please let us know, so we can expedite the process as soon as possible. Also, know that this document may serve as official evidence in case you fail to cooperate in this matter.
Sincerely,
{Your Name}
Sample Real Estate Commission Demand Letter
Dear Mr. Terrence Markham,
This letter is in reference to the $10,000 commission payment due me, Jonah Bishop by you Terrence Markham. This is to be considered an official request for immediate payment earned via the sale of the Victorian Home on the corner of Marsdale and Dixon, Centerville, New Jersey. The date of sale being March 31, 2020.
All documents referencing this transaction have been attached to this real estate commission demand letter. If you do not act to resolve this issue 30 days from March 31, 2020, then we will be forced to partake in legal action. Know that you will be responsible for any and all legal fees.
If you are having difficulty or any questions, please let us know, so we can expedite the process as soon as possible. Also, know that this document may serve as official evidence in case you fail to cooperate in this matter.
Sincerely,
Jonah Bishop
Real Estate Commission Demand Letter (Word Template)
Conclusion
The real estate commission demand letter allows you to organize and present your position to the recipient. The letter shows you are serious about your commission and will go as far as small claims court to retrieve it. As such, compose the letter in an organized fashion, easy to understand, brief with short sentences. Stick with the fact-specific to the case. Mention the dollar amounts, documents attached and give the recipient a deadline to respond. Finally, don’t forget to proofread your real estate commission demand letter and send it certified mail. By following these simple steps, you place yourself in a positive in case you need to take it to small claims court.
