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
Relevant legal definitions
Clauses
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
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