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Real Estate Commission Demand Letter for Australia

Real Estate Commission Demand Letter Template for Australia

A Real Estate Commission Demand Letter is a formal document used in Australian jurisdictions to request payment of outstanding commission fees owed to a real estate agent or agency following a property transaction. The document serves as a professional and legally-oriented communication that outlines the specific commission amount owed, the basis for the claim, and the expected payment terms. It must comply with Australian property law and state-specific real estate regulations, including the Property and Stock Agents Act 2002 and relevant state legislation. The letter typically includes detailed reference to the original agency agreement, property transaction details, and specific payment requirements.

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What is a Real Estate Commission Demand Letter?

A Real Estate Commission Demand Letter is utilized when a real estate agent or agency needs to formally request payment of commission fees that remain unpaid following a property transaction in Australia. This document is typically employed after initial informal attempts to collect payment have been unsuccessful, but before initiating legal proceedings. It serves as a crucial step in the commission recovery process and must adhere to Australian legal requirements, including state-specific real estate regulations and consumer protection laws. The letter should include comprehensive details about the property transaction, reference to the agency agreement, exact commission calculations, and clear payment terms. It's an essential tool for real estate professionals operating in Australian jurisdictions to protect their rightful commission claims while maintaining professional relationships.

What sections should be included in a Real Estate Commission Demand Letter?

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

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

3. Property Details: Complete details of the property involved in the transaction

4. Transaction Reference: Details of the sale/lease transaction including dates and parties involved

5. Commission Claim: Clear statement of the commission amount being claimed with calculation breakdown

6. Legal Basis: Reference to the agreement or basis upon which the commission is being claimed

7. Payment Instructions: Clear payment terms, deadline, and acceptable payment methods

8. Consequences of Non-Payment: Professional statement regarding next steps if payment is not received by the deadline

What sections are optional to include in a Real Estate Commission Demand Letter?

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

2. Agency Agreement Extract: Relevant excerpts from the agency agreement, used when necessary to reinforce the legal basis of the claim

3. Dispute Resolution: Optional section outlining preferred method of dispute resolution, used when wanting to encourage amicable resolution

4. Third Party Authorization: Used when the letter is being sent by a legal representative or authorized agent on behalf of the real estate agent

What schedules should be included in a Real Estate Commission Demand Letter?

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

2. Copy of Agency Agreement: Attachment of the relevant signed agency agreement showing commission terms

3. Transaction Timeline: Chronological list of relevant dates and events related to the property transaction

4. Previous Communications Log: Copies of relevant previous correspondence regarding the commission

Authors

Alex Denne

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

Jurisdiction

Australia

Publisher

Ƶ

Document Type

Demand Letter

Sector

Cost

Free to use
Relevant legal definitions

























Clauses















Relevant Industries

Real Estate

Property Development

Legal Services

Property Management

Construction

Commercial Property

Residential Property

Professional Services

Relevant Teams

Legal

Sales

Finance

Operations

Compliance

Administration

Accounts Receivable

Property Management

Business Development

Executive Leadership

Relevant Roles

Real Estate Agent

Property Manager

Sales Director

Legal Counsel

Compliance Officer

Managing Director

Commission Manager

Account Executive

Real Estate Broker

Agency Principal

Collections Manager

Finance Manager

Business Development Manager

Operations 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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