Demand Letter
A formal written notice sent by one party to another requesting specific action, typically payment of overdue amounts or compliance with contract terms. In real estate, demand letters are commonly used to request overdue rent, HOA fees, or to notify parties of contract violations before initiating legal proceedings.
Example
“After the tenant failed to pay rent for three months, the landlord's attorney sent a demand letter giving them 10 days to pay or face eviction proceedings.”
Memory Tip
Think 'I DEMAND you do this NOW' - it's the formal, legal way of demanding action before going to court.
Why It Matters
Receiving a demand letter often serves as the final opportunity to resolve an issue before facing legal action, potentially saving thousands in court costs and attorney fees.
Common Misconception
Many people believe demand letters are just threats with no legal weight, but they often serve as required legal notices that can strengthen a party's position in court.
In Practice
A landlord sends a demand letter to a tenant who is three months behind on rent, giving them 10 days to pay in full or face eviction proceedings.
Etymology
From Latin 'demandare' meaning 'to entrust' or 'to commission,' evolving to mean formally requesting what is owed or required.
Common Misspellings
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