An exclusive right to lease agreement is a listing contract in which you authorize a single broker to find a tenant for your rental property and agree that the broker earns a commission on any lease signed during the term, regardless of who actually produced the tenant. If your cousin walks up and signs the lease, the broker still gets paid. That is the whole point of the structure, and it is why brokers are willing to spend real money marketing the property under it.
How It Compares to Other Listing Arrangements
Three listing structures are common, and the differences matter because they decide when you owe a commission.
Under an exclusive agency agreement, one broker is the only agent authorized to market the property, but you can find a tenant yourself and owe nothing. Under an open listing, you can hire several brokers at once and pay only whichever one actually produces the tenant. The exclusive right to lease sits at the far end: one broker, full commission rights, no matter the source.
Landlords sometimes resist the exclusive right version because it feels like surrendering control. In practice it tends to produce faster results. A broker who knows they cannot be cut out at the finish line will pay for professional photography, syndicated listings, signage, and showings. If a property has been sitting vacant and you need aggressive marketing, this is the structure most brokers will insist on before committing their resources.
What the Agreement Should Spell Out
A workable agreement covers the property, the money, and the timeline with enough precision that nothing is left for later argument.
For the property, include the full legal description from your deed or tax records, the street address, and any amenities being leased with it: appliances, parking spaces, storage. Vague descriptions create disputes.
For the money, state the monthly rent you want, the security deposit amount, and the broker’s compensation. Residential leasing commissions commonly run between 50 and 100 percent of the first full month’s rent, though some brokers charge a flat fee. Whatever structure you agree to, write it in exact terms.
For the timeline, pick clear start and end dates. A typical term runs 90 to 180 days. A blank or vague expiration date invites a situation where the broker claims commission on a tenant who surfaced months after you thought the relationship had ended.
Every titled owner must be named and sign. The agreement should also include a statement confirming the owner’s legal authority to lease the premises, whether through direct ownership, a trust, or a valid power of attorney.
When the Broker Earns the Commission
The commission clause is the heart of the contract. In most exclusive right to lease agreements, the broker’s fee is considered earned the moment any of three things happens during the listing period: you agree to lease the property to anyone at any price and on any terms, the broker finds a tenant ready and able to lease at the listed price, or you breach the agreement. That third trigger surprises landlords, but it exists to protect the broker from owners who sign up and then refuse to cooperate.
The Protection Period After Expiration
Most agreements include a protection clause, sometimes called a holdover or extender provision, that lets the broker collect a commission for a set window after the agreement expires. If the broker introduced a prospective tenant during the listing period and that person signs a lease within the protection window, the broker still gets paid. The National Association of REALTORS requires that MLS listing forms leave this duration negotiable rather than setting a fixed default, so the length is entirely between you and the broker.1National Association of REALTORS®. Current Listings, Section 17: Protection Clauses in Association MLS Standard Listing Contracts Common protection periods run from 30 to 90 days.
One safeguard worth insisting on: if you sign a new exclusive agreement with a different broker after the first expires, the new agreement generally cancels the previous broker’s protection period, which prevents double commissions. Make sure the clause addresses this scenario explicitly.
What You Owe If You Cancel Early
Signing commits you for the full term. You have the legal power to end the relationship at any time, because agency law lets either party terminate a fiduciary relationship. The power to terminate is not the same as the right. If you pull out before the agreement expires without a legally sufficient reason, you have breached the contract.
The consequences depend on the language you signed, but they can include reimbursing the broker for marketing expenses already spent and potentially owing the full commission the broker would have earned had the property been leased. Some agreements include a specific early termination provision with a negotiated fee. If you think there is any chance you will want to cancel, negotiate that clause before signing. Agreeing to reimburse documented expenses is a reasonable middle ground most brokers will accept.
If the broker is the one underperforming, document the problem. Failure to market the property, missed showings, or lack of communication can be a breach on the broker’s side and give you grounds to terminate without penalty. Put complaints in writing and keep the records.
Fair Housing and Screening Still Fall on You
Hiring a broker does not transfer your fair housing obligations. The Fair Housing Act prohibits discrimination in rental housing based on seven protected classes: race, color, religion, sex, national origin, familial status, and disability.2Office of the Law Revision Counsel. 42 U.S.C. 3604 – Discrimination in the Sale or Rental of Housing Many state and local laws add protections. Your rental criteria, whether income thresholds, credit scores, or rental history, have to be applied uniformly to every applicant.
Penalties are serious. In enforcement actions brought by the Attorney General, civil penalties can reach $50,000 for a first violation and $100,000 for subsequent violations, with those amounts adjusted upward for inflation each year.3Office of the Law Revision Counsel. 42 U.S.C. 3614 – Enforcement by Attorney General Private lawsuits can produce actual damages, punitive damages, and attorney fees paid to the tenant.4Office of the Law Revision Counsel. 42 U.S.C. 3613 – Enforcement by Private Persons
Two screening areas deserve a direct heads-up to your broker. Reasonable accommodation requests for assistance animals, including emotional support animals, generally must be granted even under a no-pets policy, and you cannot charge a pet deposit or pet fee for them.5U.S. Department of Housing and Urban Development. Assistance Animals And for any property built before 1978, federal law requires the landlord to provide prospective tenants with a lead warning statement and disclose known lead-based paint hazards; the broker handles this on your behalf, but the obligation is yours.6Office of the Law Revision Counsel. 42 U.S.C. 4852d – Disclosure of Information Concerning Lead Upon Transfer of Residential Property Repainting does not eliminate the disclosure requirement.
Signing and Keeping a Copy
Electronic signatures are valid for these agreements. The federal Electronic Signatures in Global and National Commerce Act covers real estate lease transactions and provides that a contract cannot be denied legal effect solely because it was signed electronically.7Office of the Law Revision Counsel. 15 U.S.C. 7001 – General Rule of Validity The law is technology-neutral, so a click-to-sign platform, a typed name, or a scanned image of your handwritten signature all work.
One practical requirement: the signed agreement must be stored in a format all parties can accurately reproduce later. A PDF saved to your email meets that standard. A cloud link that expires in 30 days probably does not. Every titled owner and the broker should receive a complete copy of the executed agreement immediately after signing. That copy is your reference point for every commission question, termination dispute, and screening decision that follows.