Brokerage Agreement: Exclusive Right to Lease Listing Agreement (Commercial Lease)

by Practical Law Real Estate

A Standard Document providing a model exclusive right to lease listing agreement between a commercial property owner and a broker. This agreement grants the broker the sole right to list, market, and secure a tenant for a specified commercial property. This Standard Document outlines key provisions including the listing term, the lease parameters the broker is authorized to market (such as rent, lease term, and tenant improvements), and the scope of the broker's duties and authority. It provides a detailed framework for calculating the broker's commission, addressing when fees are earned and when they become payable. This includes fees for the initial lease term and for potential renewals, expansions, or a sale of the premises. This Standard Document also covers important related topics like the broker protection period (or tail period), termination rights for both parties, cooperating broker arrangements, and mutual representations and warranties. It is drafted with balanced provisions that can be tailored to the parties' specific needs. This Standard Document has integrated notes with important explanations and drafting and negotiating tips for both parties. While brokerage agreements are generally governed by state law, this jurisdictionally neutral template is useful and relevant in every state.