Leasing agreements are legal agreements made to lease property, and are used for both residential and commercial properties. Commercial leasing agreements and residential leasing agreements differ in a number of ways. Commercial agreements are usually for a longer period of time, and are generally more negotiable than residential agreements. Residential agreements are subject to more consumer protection than commercial agreements, and can be easier to break than commercial leasing agreements. All leasing agreements will generally specify the length of the lease, the amount of rent and other fees to be paid, and other specific terms. When signed, leasing agreements are legally binding contracts, and breaking a lease agreement can result in monetary penalties or legal action. A leasing agreement should clearly state what penalties will result if the lease is broken or violated. Laws vary by state and sometimes by city, therefore leasing agreements can differ depending on the location of the property.