Exclusive Leasing Agency Agreement Template for England and Wales

An exclusive leasing agency agreement appoints one letting agent as the sole authorised agent to market and let a property on behalf of a landlord. During the exclusivity period, the landlord cannot instruct other agents. The agent earns a letting fee on successful completion of a tenancy. All terms, including the fee and agency type, must be confirmed in writing under the Estate Agents Act 1979.

The letting agent can charge the landlord a fee for finding a tenant, which is typically expressed as a percentage of the annual rent or as a fixed fee. Under the Tenant Fees Act 2019, agents cannot charge tenants fees beyond the permitted payments, which include rent, deposits, and a limited range of default charges. Prohibited fees passed to tenants are recoverable by the tenant and attract civil penalties.

Under the Estate Agents Act 1979, the agent must disclose the commission rate or fee, the meaning of the agency type (exclusive, sole, or multiple), the circumstances in which a fee becomes payable, and any personal or financial interest held by the agent in the property. These disclosures must be made in writing before marketing begins, or the fee may be unenforceable.

Most exclusive leasing mandates in England run for four to twelve weeks, after which the agreement may terminate or revert to a non-exclusive arrangement. The length depends on the property type and market conditions. The agreement should specify whether it automatically renews if no tenant has been found, and what notice is required to end the arrangement.

Under a strict exclusive agreement, the letting fee is payable regardless of who introduces the tenant, including the landlord themselves. Under a sole agency version, the landlord may let privately without paying a fee. The distinction turns on the precise wording of the commission trigger clause. Check the agency type defined in the agreement before instructing a friend or existing contact as a tenant.

The Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2017 require letting agents whose monthly rental income exceeds 10,000 euros (or equivalent) from a single transaction to conduct customer due diligence on both the landlord and prospective tenants. Identity documents, proof of address, and source-of-funds confirmation may be required before the tenancy can proceed.

Under the Consumers, Estate Agents and Redress Act 2007, all letting agents operating in England must be members of an approved redress scheme. Currently the main schemes are The Property Ombudsman and the Property Redress Scheme. Landlords or tenants with complaints about the agent's conduct can refer them to the relevant scheme if an internal resolution cannot be reached.

If the property is sold to a new owner during the term of the exclusive leasing agreement, the new owner may take on the landlord's obligations under the existing agency agreement if the agreement runs with the property, though this is uncommon. More typically, the agency agreement is personal to the original landlord. Check the assignment clause before completion of any sale during an active exclusive leasing mandate.