Form-of-the-Week:

Exclusive Authorization to Lease Property, and a Schedule of Leasing Agent’s Fees — Form 110 and 113

A leasing agent’s bargain for fees

Consider a commercial property offered for lease by the owner. A broker makes an appointment with the owner to discuss the possibility of employment as their leasing agent.

During the discussion, the broker explains brokers are best able to assist owners locate a tenant who will lease their property when the owner retains one broker to act on their behalf in the leasing market by entering into an exclusive authorization to lease, commonly called a listing and more accurately an employment agreement. [See RPI Form 110]

As explained, the broker will act on behalf of the owner under the listing to:

To help distinguish services, a broker acting solely as a leasing agent explains they do not manage or operate the property in an ongoing arrangement with the owner as does a property manager. [See RPI Form 590]

Instead, the duties of a leasing agent are limited to:

  • locating a prospective long-term tenant; and
  • negotiating a lease agreement for their occupancy of the space.

Right to compensation for services
Written authorization to lease
Fee schedule establishes broker’s right to a fee
The exclusive right-to-collect clause
Early termination by owner triggers fee
Safety clause covers prospects who later lease
Additional fees under the fee schedule on an extension

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rpi-113-schedule-of-leasing-agents-fee