Demand Letter
Secure your commission and resolve Texas CRE disputes. Expert-drafted demand letters addressing Tex. Bus. & Com. Code, CAM charges, and commission triggers.
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In the fast-paced Texas commercial real estate market, professional boundaries often blur between an LOI and a binding execution. Whether you are facing a commission dispute on a triple net lease or... Read more
In the fast-paced Texas commercial real estate market, professional boundaries often blur between an LOI and a binding execution. Whether you are facing a commission dispute on a triple net lease or misrepresentation regarding tenant improvement allowances, a formal demand letter is your first line of defense. This tool is specifically designed to leverage the Texas Business and Commerce Code and the Statute of Frauds (Tex. Bus. & Com. Code § 26.01) to protect your brokerage fees and clarify liability before escalating to the DTPA or litigation.
Beyond the standard demand letter sections, this template adds fields specific to Commercial Real Estate Broker:
The core legal purpose of a demand letter is to formally notify the recipient of a claim and demand specific action or compensation, providing an opportunity to resolve a dispute without litigation. It serves as an assertion of a legal right and provides legal protection by documenting the claim and creating a record of the attempt to resolve the matter amicably.
Misrepresentation claims
Detailed disclaimers in contracts stating that all representations are believed to be accurate but should be independently verified by clients.
Commission disputes
Clear agency agreements and commission schedules included in contracts outlining the fees and when they are earned.
For this demand letter to be legally valid:
Common mistakes to avoid:
While not always mandatory for every claim, a demand letter is often a prerequisite for recovering attorney's fees under Texas Civil Practice and Remedies Code Chapter 38. It also serves as formal notice under the Texas Deceptive Trade Practices Act (DTPA) if misrepresentation is involved, providing a 60-day window for the recipient to settle before a suit is filed.
Our form allows you to specify the 'Legal Basis' for your demand. You should reference the specific lease clause governing Common Area Maintenance (CAM) or Tenant Improvement (TI) allowances. In Texas, clear documentation of these costs is essential to overcome ambiguities that could lead to lease liability disputes.
Under the Texas Real Estate License Act (TRELA) and Tex. Bus. & Com. Code § 26.01 (Statute of Frauds), an agreement to pay a commission for the sale or lease of real estate must generally be in writing and signed to be enforceable. This demand letter helps you assert your rights based on the written agency agreements and commission schedules you have on file.
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