What document outlines the representation terms between a real estate agent and a property owner?

The listing agreement is a critical document in real estate transactions that establishes the relationship between a real estate agent and a property owner. This agreement details the specific terms under which the agent will represent the owner in the sale of their property. Key elements included in a listing agreement are the length of the agreement, the commission structure, and the responsibilities of both the agent and the property owner.

By outlining these terms, the listing agreement ensures clarity and sets expectations for the representation provided by the agent, aligning the interests of both the agent and the property owner. In this way, the document serves as a formal contract that governs the working relationship and serves as a foundation for the sales process.

Other documents, while important in real estate transactions, serve different purposes. A purchase agreement deals with the terms of the sale once an offer has been accepted. An appraisal report provides an estimate of the property's value based on comparative market analysis and cannot establish representation. A transaction disclosure statement outlines the condition of the property and any known issues but does not define the relationship between the agent and the owner.