Real Estate Commission Demand Letter Template for England and Wales

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Key Requirements PROMPT example:

Real Estate Commission Demand Letter

"I need a Real Estate Commission Demand Letter for a £25,000 commission payment that's 60 days overdue, relating to the sale of a commercial property in Manchester that completed on March 15, 2025, with a final warning before legal action."

Document background
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.
Suggested Sections

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

Optional Sections

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

Suggested Schedules

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

Authors

Alex Denne

Head of Growth (Open Source Law) @ Genie AI | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Industries

Estate Agents Act 1979: Primary legislation governing estate agent conduct, obligations, and rights in England and Wales, including provisions about commission claims

Consumer Rights Act 2015: Key legislation ensuring fairness in consumer transactions and contracts, including property dealings with private sellers

Law of Property Act 1925: Fundamental property law legislation that governs real estate transactions in England and Wales

Consumer Protection from Unfair Trading Regulations 2008: Regulations protecting consumers from unfair practices in property transactions, including misleading actions or omissions

Estate Agents (Provision of Information) Regulations 1991: Specific regulations detailing what information estate agents must provide to clients, including commission structures

Estate Agents (Undesirable Practices) (No.2) Order 1991: Regulations outlining prohibited practices in estate agency work, including commission-related misconduct

Property Ombudsman Scheme: Regulatory framework providing dispute resolution and setting industry standards for estate agents

RICS Guidelines: Professional standards and guidelines set by the Royal Institution of Chartered Surveyors for property professionals

Common Law Contract Principles: Fundamental legal principles governing contract formation, consideration, and enforcement in England and Wales

Late Payment of Commercial Debts (Interest) Act 1998: Legislation governing the charging of interest on late commercial payments, applicable to commission disputes

Pre-Action Protocol for Debt Claims: Court procedures that must be followed before initiating legal proceedings for debt recovery, including commission claims

Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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