Demand Letter

Professional Demand Letter for Commercial Real Estate Broker in Texas

Secure your commission and resolve Texas CRE disputes. Expert-drafted demand letters addressing Tex. Bus. & Com. Code, CAM charges, and commission triggers.

By The PaperForge Editorial TeamLast updated August 24, 2026

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Parties

Sender Name *

Sender Address

Your address for formal correspondence.

Recipient Name *

Demand

Demand Amount *

Demand Description *

Include timeline of events and supporting evidence.

Date *

Payment Deadline *

Consequence if Not Paid *

Signatures

Sender Signature

Legal Basis

Nature of Dispute *

Payment

Total Amount Demanded (USD) *

Terms

Deadline for Compliance *

Statement of Facts *

Detail the transaction timeline, including the date of the LOI, the signing of the triple net lease, and the specific trigger point (e.g., lease commencement, rent commencement) that justifies this demand.

I understand this tool generates templates for informational purposes only and does not constitute legal, business, or financial advice.

[date]

[recipient_name]

Re: Formal Demand for Payment — [demand_amount]

Dear [recipient_name],

I am writing to you on behalf of myself, [sender_name], to make a formal demand for payment of the sum of [demand_amount] that you owe to me. Despite my prior attempts to resolve this matter amicably, you have failed to satisfy your financial obligation. This letter constitutes my final demand for payment before I pursue legal action.

Background and Basis for Demand

The following is a summary of the facts and circumstances giving rise to your obligation to pay the amount demanded: [demand_description] As a result of the foregoing, you are indebted to me in the amount of [demand_amount]. This amount represents the full sum owed, which may include principal, accrued interest, late fees, and any other charges or damages to which I am entitled under the applicable agreement, invoice, or law.

Demand for Payment

I hereby demand that you pay the full amount of [demand_amount] within the deadline specified below. Payment must be made in the form of certified check, cashier's check, money order, or wire transfer directed to the undersigned at the address set forth in this letter. Personal checks will not be accepted. Partial payment will not be deemed to satisfy your obligation, nor will it constitute a waiver of my right to demand the full amount owed. Any payment received will be applied first to accrued interest and fees, and then to the principal balance.

Consequences of Non-Payment

If I do not receive payment in full by the deadline specified above, I will pursue the following course of action without further notice to you:

Accrual of Additional Damages

Please be advised that interest on the unpaid balance continues to accrue at the maximum rate permitted by applicable law. Each day that passes without payment increases your total financial liability. Additionally, in the event that legal action becomes necessary, you will be responsible for all attorneys' fees, court costs, and other expenses incurred in the collection of this debt, to the fullest extent permitted by law.

Settlement Opportunity

While I am fully prepared to pursue legal remedies if necessary, I would prefer to resolve this matter without the time, expense, and burden of litigation. If you wish to discuss a payment arrangement or negotiate a resolution, you must contact me in writing within the deadline specified above. Any offer to settle must include payment of a substantial portion of the amount owed and a firm, enforceable timeline for payment of any remaining balance. I am under no obligation to accept any settlement offer, and my willingness to consider one should not be construed as a concession or waiver of any of my rights. This letter is written without prejudice to any and all rights and remedies available to me under applicable law, all of which are expressly reserved. Nothing herein shall be construed as a waiver of any legal right or remedy.

Amount Demanded—

Payment Deadline—

Additional Provisions

Written Commission Agreement Signed by the Party Charged

The commission demanded arises under a written agreement signed by the party to be charged, as Tex. Occ. Code § 1101.806(c) requires before a person may maintain an action to recover a commission for a real estate transaction in Texas. A copy of that agreement is enclosed with the paragraph fixing the rate and the triggering event marked for reference. No oral modification of the rate or trigger is enforceable, and the sender relies on the executed writing as the sole measure of the amount now claimed under this letter.

Licensure, Procuring Cause, and Standing

The sender was at all relevant times a broker licensed under Chapter 1101 of the Texas Occupations Code, and the license number appears above. The sender performed the acts on which the claim rests, including procuring the counterparty, presenting the letter of intent, and coordinating diligence through closing, and is therefore the procuring cause of the transaction that closed on the date recited. The recipient is directed to the enclosed correspondence establishing the sender's introduction of the counterparty to the property.

Statutory Interest and Recovery of Attorney's Fees

Interest is claimed on the unpaid commission from the closing date at the rate stated in the representation agreement or, absent a stated rate, at the rate permitted by Tex. Fin. Code § 302.002. Should suit become necessary, the sender will seek reasonable attorney's fees under Tex. Civ. Prac. & Rem. Code § 38.001, which authorizes recovery on a claim founded on a written contract or on services rendered. This demand is made in good faith to resolve the matter without litigation and to satisfy any presentment requirement.

Preservation of Escrow and Diligence Records

The recipient shall preserve the closing statement, the title company file, all drafts of the letter of intent, and communications with the counterparty and any cooperating broker, because those records are material to the procuring cause question. The recipient is further directed to instruct the closing agent to retain the disputed amount pending resolution rather than to disburse it. This preservation notice is given with reference to Rule 196.4 of the Texas Rules of Civil Procedure governing the production of electronically stored information.

Additional Details

Nature of Dispute: [dispute category]

Total Amount Demanded (USD): [unpaid amount]

Deadline for Compliance: [compliance deadline]

Statement of Facts:

[factual background]

Sincerely, [sender_name]

Sender

Name: Sender

Date: ___________________

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Why You Need This Demand Letter

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.

Your Collection Rights & Legal Standing

What This Letter Communicates

Beyond the standard demand letter sections, this template adds fields specific to Commercial Real Estate Broker:

+Nature of Dispute(Legal Basis)

+Total Amount Demanded (USD)(Payment)

+Deadline for Compliance(Terms)

+Statement of Facts(Terms)

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.

Situations That Call for a Demand Letter

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.

Lease liability issues

Including precise language in leases regarding responsibilities for maintenance, repairs, and liabilities to avoid disputes.

Collection Law in Texas

Tex. Bus. & Com. Code § 26.01 — Texas' version of the Statute of Frauds requires certain contracts to be in writing, including those involving the sale of real estate and agreements that cannot be performed within one year. Texas provides some unique exceptions not found in other states.

What Makes a Demand Letter Effective

For this demand letter to be legally valid:

+A demand letter itself is not a legally enforceable document, but it should be clear, factual, and include all necessary sections for legal purposes.
+It must be sent via a method that provides proof of delivery, such as certified mail with return receipt requested, to substantiate that the recipient received the demand.
+While not legally required, having the letter reviewed by legal counsel before sending can enhance its effectiveness and avoid common pitfalls.

Common mistakes to avoid:

!Failing to specify a clear and reasonable deadline for compliance which might lead to extended disputes.
!Omitting supportive facts or evidence that substantiate the claim, weakening the letter's impact.
!Including overly aggressive language that could lead to claims of bad faith or harassment.
!Not citing specific legal grounds or references, which can make the demand seem unfounded or unreasonable.
!Sending the letter without maintaining a record of delivery (e.g., certified mail).

Texas-Specific Provisions to Watch

+Texas is a community property state, affecting asset distribution in divorce and death.
+The Texas Homestead Law offers unique protection against the forced sale of homes for the collection of general debts.
+Texas Bulk Sales Law currently does not follow the Uniform Commercial Code provision, allowing for different treatment in the sale of business assets.
+Texas has rigorous privacy laws concerning the protection of personal information under the Texas Business & Commerce Code for disposing of business records.
+Lien laws in Texas, particularly for construction, have specific procedures and notifications that affect contract enforceability.

Regulations Commercial Real Estate Broker Must Know

Real Estate Settlement Procedures Act (RESPA)

Governs real estate transactions including commercial ones, ensuring transparency in settlement services.

Enforced by Consumer Financial Protection Bureau (CFPB)

Truth in Lending Act (TILA)

Regulates the disclosure of credit terms to protect against unfair billing and credit card practices, applicable when financing is involved in commercial real estate.

Enforced by Consumer Financial Protection Bureau (CFPB)

Uniform Commercial Code (UCC)

While not a federal regulation, UCC is widely adopted state-level legislation that governs commercial transactions including real estate deals.

Enforced by Various state governments

Licensing & Insurance for Commercial Real Estate Broker

+State real estate license (specific requirements vary by state, typically involves passing an exam and completing a certain number of course hours)
+Continuing education to maintain the license (varies by state)

Recommended coverage: Errors & Omissions Insurance · General Liability Insurance · Professional Liability Insurance

Contract Pitfalls Specific to Commercial Real Estate Broker

!Disputes over commission payments, often due to unclear or unstated trigger points for payment.
!Ambiguities in lease agreements, particularly relating to responsibilities for repairs and maintenance based on lease types like triple net or full service.
!Misinterpretations of LOI (Letter of Intent) non-binding clauses, leading to assumed obligations before a formal contract is signed.
!Negotiations over CAM (Common Area Maintenance) charges, which are often a contentious point between landlords and tenants.
!Disagreements on tenant improvement allowances and responsibilities for costs exceeding the agreed amount.

Frequently Asked Questions

Is a demand letter legally required before filing a lawsuit in Texas?

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.

How do I address disputed CAM charges or TI allowances in this letter?

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.

Can I use this letter if my commission agreement was oral?

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.

Not sure if you need this?

Late Fee Calculator →Lease Break Cost Calculator →Security Deposit Return Calculator →

Demand Letter for Commercial Real Estate Broker by state

State laws affect what must be in this document. Pick your jurisdiction.

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Why You Need This Demand Letter

Your Collection Rights & Legal Standing

What This Letter Communicates

Beyond the standard demand letter sections, this template adds fields specific to Commercial Real Estate Broker:

+Nature of Dispute(Legal Basis)

+Total Amount Demanded (USD)(Payment)

+Deadline for Compliance(Terms)

+Statement of Facts(Terms)

Situations That Call for a Demand Letter

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.

Lease liability issues

Including precise language in leases regarding responsibilities for maintenance, repairs, and liabilities to avoid disputes.

Collection Law in Texas

What Makes a Demand Letter Effective

For this demand letter to be legally valid:

+A demand letter itself is not a legally enforceable document, but it should be clear, factual, and include all necessary sections for legal purposes.
+It must be sent via a method that provides proof of delivery, such as certified mail with return receipt requested, to substantiate that the recipient received the demand.
+While not legally required, having the letter reviewed by legal counsel before sending can enhance its effectiveness and avoid common pitfalls.

Common mistakes to avoid:

!Failing to specify a clear and reasonable deadline for compliance which might lead to extended disputes.
!Omitting supportive facts or evidence that substantiate the claim, weakening the letter's impact.
!Including overly aggressive language that could lead to claims of bad faith or harassment.
!Not citing specific legal grounds or references, which can make the demand seem unfounded or unreasonable.
!Sending the letter without maintaining a record of delivery (e.g., certified mail).

Texas-Specific Provisions to Watch

+Texas is a community property state, affecting asset distribution in divorce and death.
+The Texas Homestead Law offers unique protection against the forced sale of homes for the collection of general debts.
+Texas Bulk Sales Law currently does not follow the Uniform Commercial Code provision, allowing for different treatment in the sale of business assets.
+Texas has rigorous privacy laws concerning the protection of personal information under the Texas Business & Commerce Code for disposing of business records.
+Lien laws in Texas, particularly for construction, have specific procedures and notifications that affect contract enforceability.

Regulations Commercial Real Estate Broker Must Know

Real Estate Settlement Procedures Act (RESPA)

Governs real estate transactions including commercial ones, ensuring transparency in settlement services.

Enforced by Consumer Financial Protection Bureau (CFPB)

Truth in Lending Act (TILA)

Regulates the disclosure of credit terms to protect against unfair billing and credit card practices, applicable when financing is involved in commercial real estate.

Enforced by Consumer Financial Protection Bureau (CFPB)

Uniform Commercial Code (UCC)

While not a federal regulation, UCC is widely adopted state-level legislation that governs commercial transactions including real estate deals.

Enforced by Various state governments

Licensing & Insurance for Commercial Real Estate Broker

+State real estate license (specific requirements vary by state, typically involves passing an exam and completing a certain number of course hours)
+Continuing education to maintain the license (varies by state)

Recommended coverage: Errors & Omissions Insurance · General Liability Insurance · Professional Liability Insurance

Contract Pitfalls Specific to Commercial Real Estate Broker

!Disputes over commission payments, often due to unclear or unstated trigger points for payment.
!Ambiguities in lease agreements, particularly relating to responsibilities for repairs and maintenance based on lease types like triple net or full service.
!Misinterpretations of LOI (Letter of Intent) non-binding clauses, leading to assumed obligations before a formal contract is signed.
!Negotiations over CAM (Common Area Maintenance) charges, which are often a contentious point between landlords and tenants.
!Disagreements on tenant improvement allowances and responsibilities for costs exceeding the agreed amount.

Frequently Asked Questions