Legal & Licensing Compliance

Business Registration

Lease Exchange is a legally registered business operating in compliance with Wisconsin state regulations. We continue to evaluate whether additional real estate licensing is required for lease transfers in different states and jurisdictions.

Lease Transfer vs. Subleasing

Lease Exchange only facilitates full lease reassignment, not subleasing. This distinction is important because:

  • The future tenant assumes full rights and responsibilities under the lease, as opposed to a sublease where the original tenant remains liable.

  • Landlord approval is required before a lease reassignment can take effect.

  • Lease Exchange does not act as a property manager or landlord but serves as a neutral facilitator.

All lease reassignments must comply with the original property management or landlord lease agreement, and any restrictions related to lease transfers, fees, or required approvals are upheld​.

Tenant Screening & Fair Housing Compliance

Pre-Screening Process

Lease Exchange offers an optional tenant screening service to assist landlords in evaluating future tenants. The screening process includes:

  • Credit history checks

  • Criminal background checks

  • Eviction history reports

  • Income verification

Future tenants must comply with all screening, credit check, and deposit requirements set by the property manager. Participation in this screening is voluntary, and final approval remains at the discretion of the landlord or property manager​.

Fair Housing Compliance

Lease Exchange strictly adheres to Fair Housing Laws, which prohibit discrimination based on:

  • Race, color, national origin, religion, sex, familial status, or disability.

  • Landlords must provide valid reasons for denying a lease reassignment, such as credit history, rental background, or income verification issues.

If Lease Exchange becomes aware of discriminatory practices, we may remove landlords or tenants from the platform and report violations to the appropriate authorities​.

Landlord Approval & Lease Terms

Landlord Rights & Approval Process

  • Landlords maintain full discretion to approve or deny a lease reassignment request.

  • Lease Exchange does not guarantee approval even if a tenant passes the screening process.

  • Until approval is granted, the current tenant remains fully responsible for rent payments and other lease obligations​.

Tenant Protections Against Unfair Denial

If a landlord denies a lease reassignment, they must provide a valid, documented reason related to:

  • Insufficient credit, income, or rental history.

  • Previous evictions or outstanding rental debts.

  • Violation of property management policies.

If a future tenant believes they were unfairly denied, Lease Exchange will assist in clarifying the reason but cannot override a landlord’s decision​.

Financial & Fee Compliance

Transparent Fee Structure

Lease Exchange charges the future tenant the following fees:

  • $50 service fee upon signing the Lease Exchange Agreement. (subject to change)

  • 10% of the agreed-upon premium (if applicable), payable upon lease execution. (subject to change)

The current tenant may charge a premium to transfer the lease, which is negotiated directly between tenants​.

Refund Policy

  • If the landlord denies the lease reassignment, the $50 service fee is non-refundable, but the 10% premium fee will be refunded in full.

  • If a tenant backs out after signing, they may forfeit their payment unless another tenant is found​.

Secure Payment Processing & Dispute Resolution

How Payments Are Handled

  • Lease Exchange does not handle direct rent payments but facilitates secure transactions for fees and lease premiums.

  • Payments are processed through Stripe or other secure platforms to prevent fraud.

  • Lease Exchange is not liable for disputes over payments between tenants and landlords​.

Dispute Resolution

  • If a dispute arises, both parties may submit evidence of payment, lease agreements, and communication.

  • Lease Exchange will attempt to mediate, but disputes related to lease terms or security deposits must be resolved between the tenant and the landlord​.

Data Protection & Privacy Compliance

User Data Security

Lease Exchange collects the following personal data:

  • Contact information (name, email, phone number).

  • Lease details (rent amount, lease duration, property address).

  • Payment details (bank information for transaction processing).

Lease Exchange does not sell or share personal data with third parties except:

  • When required to facilitate a lease reassignment (e.g., providing screening reports to landlords).

  • Legal authorities, if requested by law enforcement.

  • Service providers, such as payment processors​.

Data Retention & Deletion

  • Lease Exchange retains personal data only as long as necessary to provide services.

  • Users have the right to request access, correction, or deletion of their personal data.

  • If a user deletes their account, all associated data will be removed except where legally required​.

Terms of Service & Liability Waivers

User Responsibilities

By using Lease Exchange, users agree that:

  • Lease transfers require landlord approval.

  • All fees and payments are disclosed upfront.

  • Lease Exchange is not responsible for lease disputes or landlord decisions​.

Limitation of Liability

Lease Exchange cannot be held liable for:

  • Lease denials by landlords.

  • Loss of rental income due to tenant disputes.

  • Property damage or security deposit issues.

Lease Exchange’s total liability is limited to the amount of the service fee paid by the tenant​.

Commitment to Compliance

Lease Exchange is committed to fair, legal, and transparent lease transfers. We continuously review legal updates, landlord-tenant laws, and Fair Housing regulations to maintain full compliance.If you have questions about compliance, legal rights, or tenant protections, please contact us at:

Email: management@leaseexchange.io

Phone: (608) 455-8729

Address: 437 North Frances St, Madison, WI 53703​.