Real Estate Commission Demand Letter Template for Saudi Arabia

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Key Requirements PROMPT example:

Real Estate Commission Demand Letter

"I need to draft a Real Estate Commission Demand Letter for a 500,000 SAR commission claim related to a commercial property sale in Riyadh, with payment required by March 15, 2025, including reference to our brokerage agreement dated January 10, 2025."

Document background
The Real Estate Commission Demand Letter is a crucial document used in the Saudi Arabian real estate market when a broker or agency seeks to collect earned commission fees from a client. This document becomes necessary when commission payments are overdue or disputed, serving as a formal prerequisite to legal action under Saudi law. It must comply with both the Real Estate Broker Law (Royal Decree No. M/28) and its Implementing Regulations, while adhering to Sharia Law principles. The letter typically includes detailed transaction information, commission calculations, payment terms, and supporting documentation, establishing a clear legal basis for the claim within the Saudi Arabian jurisdiction. It represents a critical step in the commission recovery process and can be used as evidence in subsequent legal proceedings if payment is not received.
Suggested Sections

1. Sender Details: Full name, license number, and contact information of the real estate broker/agency

2. Recipient Details: Full name and address of the party from whom commission is being demanded

3. Date and Reference Number: Official date of the letter and any reference numbers for tracking

4. Subject Line: Clear indication that this is a commission demand letter and reference to the specific transaction

5. Transaction Details: Specific details of the real estate transaction for which commission is being claimed

6. Commission Claim: Exact amount being claimed and calculation basis as per agreement/standard rates

7. Legal Basis: Reference to relevant agreements, laws, and regulations supporting the commission claim

8. Payment Instructions: Clear payment terms, deadline, and banking details

9. Consequences of Non-Payment: Statement of intended legal action if payment is not received by the specified deadline

10. Signature Block: Official signature, name, and title of the authorized representative

Optional Sections

1. Previous Correspondence: Reference to any previous attempts to collect the commission, used when this is not the first demand

2. Witness Statement: Statement from relevant witnesses to the transaction, used when there's a dispute about the broker's role

3. Settlement Options: Proposed payment plans or settlement options, included when there's willingness to negotiate

4. Dispute History: Summary of any relevant disputes or disagreements, included when there's a complex history

Suggested Schedules

1. Copy of Brokerage Agreement: Attachment of the original agreement establishing the broker's right to commission

2. Transaction Documentation: Copies of sale/lease agreement or other documents proving the transaction was completed

3. Broker License: Copy of valid real estate broker license as required by Saudi law

4. Communication Records: Copies of relevant emails, messages, or other correspondence proving the broker's role

5. Commission Calculation: Detailed breakdown of how the commission amount was calculated

6. Previous Demands: Copies of any previous demand letters or payment requests

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

Relevant Industries

Real Estate

Commercial Property

Residential Property

Industrial Property

Retail Property

Hospitality

Office Space

Mixed-Use Development

Construction

Property Development

Relevant Teams

Legal

Finance

Real Estate Operations

Sales

Compliance

Collections

Contract Administration

Business Development

Property Management

Accounts Receivable

Relevant Roles

Real Estate Broker

Property Manager

Sales Director

Legal Counsel

Compliance Officer

Finance Manager

Real Estate Agent

Business Development Manager

Contract Administrator

Collections Manager

Real Estate Operations Director

Transaction Manager

Account Executive

Chief Financial Officer

Real Estate Portfolio Manager

Industries
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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