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.
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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
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
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
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