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Real Estate Commission Demand Letter – Official Notice

A real estate commission demand letter is a notice given by a broker to a client who has not paid a commission. This is often after a transaction has occurred on the property, such as a sale or lease, or if other terms of the contract rightfully owe the broker.
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Updated November 26, 2024

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What is a Real Estate Commission Demand?

A real estate commission demand informs the client of a payment that is past due in accordance with the broker’s listing agreement. If the payment is not made within the allotted time period mentioned in the demand, there could be repercussions, including, but not limited to, Small Claims Court filing, a lien placed against the property, or hiring an attorney with mediation or litigation proceedings. The most appropriate strategy is to file a lien since the broker provided a service that is related to the property. Under a lien, the broker will have to be paid before the owner can obtain bank financing or sell the property.

Sample – Commercial Real Estate

Mendelsohn and Associates
575 Hillcrest Street, #2
Savannah, Georgia, 31401
(912) 555-7191
bernice@mendelsohnassoc.comApril 5th, 2020Dear Mr. Tyler Andrianakis,I, Ms. Bernice Mendelsohn, a licensed real estate agent in the State of Georgia, am writing this demand letter as my LAST NOTICE for the commission owed on the following transaction:     Property: 61 Richmond Drive, Savannah Georgia, 31403

     Transaction Type: ☒ Sale ☐ Lease

     Commission: 5% of $495,000 ($24,750)

If there is no response to this demand letter by May 5th, 2020, all legal rights shall be explored, including, but not limited to, legal proceedings necessary in accordance with State and Federal laws.

This notice of demand serves as official notice to you and may be tendered in court as evidence of your failure to cooperate. If legal action is to occur to resolve this matter, it may involve having you pay attorney’s fees.

We hope to resolve this matter as soon as possible.

Sincerely,
Bernice Mendelsohn

Sample – Residential Real Estate

Grand Avenue Realty
1300 Grand Ave.
Des Moines, IA, 50309
515-286-1687
jgraham@grandaverealty.comJanuary 12, 2020Dear Ms. Megan Jenkins,I, Mr. Jeffrey Graham, a licensed real estate agent in the State of Iowa, am writing this demand letter as my LAST NOTICE for the commission owed on the following transaction:     Property: 1865 Mondamin Ave, Apartment #4, Des Moines, IA, 50313

     Transaction Type: ☐ Sale ☒ Lease

     Commission: 1 month’s rent ($1,400)

If there is no response to this demand letter by February 19, 2020, all legal rights shall be explored, including, but not limited to, legal proceedings necessary in accordance with State and Federal laws.

This notice of demand serves as official notice to you and may be tendered in court as evidence of your failure to cooperate. If legal action is to occur to resolve this matter, it may involve having you pay attorney’s fees.

We hope to resolve this matter as soon as possible.

Sincerely,
Jeffrey Graham