09/18/2026
EXCLUSIVE RIGHT TO LEASE
What Property Owners Need to Understand Before Signing
An Exclusive Right to Lease agreement is a binding brokerage agreement between a property owner and the listing brokerage. It defines the broker’s duties, the owner’s responsibilities, the compensation to be paid, and the specific events that earn that compensation.
In Maryland, a brokerage agreement must state the amount of compensation and explain the events or conditions that entitle the broker to receive it.
The most important point: who finds the tenant may not change the owner’s obligation.
When an Exclusive Right to Lease agreement specifically provides that the agreed commission is due when a lease is obtained by the Broker, the Owner, or another person or entity, the owner cannot avoid the agreed listing commission simply because the owner personally located the tenant.
The obligation comes from the signed contract, not merely from who first introduced the tenant.
Maryland law also recognizes that a broker’s right to compensation can be controlled by the terms of a special written brokerage agreement. Courts therefore look closely at the actual contract language when determining whether a commission has been earned.
What happens when another real estate agent represents the tenant?
That is a separate issue from the owner’s obligation to the listing brokerage.
If a legitimate tenant broker is involved and the listing brokerage has agreed to cooperate and share compensation, the normal structure is:
Property Owner → Listing Brokerage → Cooperating Tenant Brokerage
The owner pays the listing brokerage according to the Exclusive Right to Lease agreement. The listing brokerage then pays the cooperating brokerage whatever amount or percentage was properly agreed upon.
The owner generally should not simply decide to deduct half of the listing broker’s commission and pay someone else directly.
Maryland brokerage agreements are required to state whether the broker is authorized to cooperate with other brokers and share compensation, as well as the amount or method of compensation when applicable.
A cooperating tenant broker must actually be involved.
A salesperson or broker claiming compensation should not appear only after the lease is completed and announce that they represented the tenant.
A legitimate cooperating broker should ordinarily make their brokerage role known during the transaction, communicate through the appropriate brokerage channels, participate in the leasing process, and establish whatever cooperation or compensation arrangement applies.
This is important because brokerage compensation is paid through licensed real estate professionals and brokerages. Maryland law generally prohibits paying real-estate brokerage compensation to an unlicensed person for brokerage services.
In other words:
Introducing a tenant is not automatically the same thing as being the tenant’s cooperating real estate broker.
There should be an actual licensed brokerage relationship and genuine participation in the transaction.
Example
Suppose the agreed listing commission is one month’s rent, and the rent is $2,300 per month.
If the Exclusive Right to Lease agreement requires the owner to pay one month’s rent upon ex*****on of a qualifying lease, the owner’s obligation would be:
Listing Commission: $2,300
If an eligible cooperating tenant brokerage had properly arranged to receive 50%, the listing brokerage might then pay:
Cooperating Brokerage: $1,150
Listing Brokerage: $1,150
The owner does not automatically reduce the contractual commission to $1,150 simply because someone later claims that another agent deserves half.
The full contractual commission is first determined under the owner’s agreement with the listing brokerage. Any legitimate cooperating-broker compensation is then handled between the licensed brokerages according to their arrangement.
One month’s rent is only an example of a commonly used compensation structure in some residential leasing transactions. Real estate commissions are negotiable and are not legally fixed at one month’s rent.
The Bottom Line
An Exclusive Right to Lease protects the listing brokerage’s contractual right to compensation.
It generally means:
“If the property is successfully leased under the circumstances described in our agreement, the agreed brokerage compensation is due — whether the tenant was located by the listing broker, the owner, or someone else covered by the agreement.”
A cooperating broker does not erase that obligation. Instead, when a legitimate cooperating brokerage is involved, any agreed broker-to-broker compensation is handled separately through the proper brokerage relationship.
That is why property owners should understand the agreement before signing it, and why brokers should document tenant representation, cooperation, compensation arrangements, and communications clearly from the beginning.
Armando D. Liban
Licensed Real Estate Broker in MD, VA, DC & NJ
Call or Text: (240) 812-2988
[email protected]
EagleWingsRealty.com
“We soar above the rest, to Find or Sell that perfect nest!”
Educational information only. Rights to compensation depend on the exact language of the signed brokerage agreement and applicable law. This is not legal advice.
