The Real Estate Commission Demand Letter is utilized when estate agents need to formally request payment of their earned commission following a successful property sale. This document is particularly relevant in England and Wales, where specific legislation governs estate agency practices and commission claims. It should be used when informal requests for payment have been unsuccessful or when establishing a formal record of demand is necessary. The letter typically includes detailed information about the property transaction, commission calculations, and reference to the original agency agreement. It serves as a crucial step in the debt recovery process and may be required before initiating legal proceedings.
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1. Sender Details: Full contact information of the estate agent/agency including name, address, registration number if applicable
2. Recipient Details: Full name and address of the party owing commission, including property address
3. Reference Line: File reference number, date, and subject line clearly stating 'Commission Demand'
4. Property Transaction Details: Details of the property sold, sale price, and date of completion
5. Commission Claim Statement: Clear statement of the commission amount owed with calculation details
6. Legal Basis: Reference to the original agency agreement and legal obligation to pay
7. Payment Instructions: Payment deadline, acceptable payment methods, and bank account details
1. Previous Correspondence Reference: Section referencing previous attempts to collect payment, including dates and methods of contact
2. Interest Calculation: Section detailing any applicable late payment interest charges under the Late Payment of Commercial Debts Act
3. Legal Action Warning: Section stating intention to pursue legal action if payment is not received by the specified deadline
1. Original Agency Agreement: Copy of the signed agency agreement showing commission terms and conditions
2. Sales Completion Evidence: Documentation proving the successful completion of the property sale
3. Commission Calculation Schedule: Detailed breakdown of how the commission amount was calculated
4. Correspondence Log: Timeline of previous payment requests and communications regarding the commission
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