What type of agreement typically outlines the payment of commissions for real estate services?

A Listing Agreement is a specific type of contract where the property owner (the seller) engages a real estate agent or broker to sell their property. This agreement outlines the terms under which the agent will operate, including the duties of the agent, the marketing strategies to be employed, and most importantly, the payment structure for commissions.

The commission typically compensates the agent for their services in facilitating the sale, and this payment is usually contingent upon the successful closing of the property sale. Listing Agreements provide clarity on what commission percentage is expected and any conditions under which a commission might be reduced or waived.

In contrast, a Purchase Agreement is primarily focused on the terms of the sale between the buyer and seller and does not generally detail commissions. An Escrow Agreement deals with the handling of funds and documents during the closing process, while a Lease Agreement outlines the terms of renting a property and does not include a commission structure for real estate services.