Which document typically specifies the terms of payment for a broker in a real estate transaction?

The listing agreement is the document that typically specifies the terms of payment for a broker in a real estate transaction. This agreement establishes the relationship between the property owner (seller) and the broker. It outlines the broker's responsibilities, including marketing the property, and most importantly, details the commission structure, which includes how and when the broker will be compensated upon the sale of the property.

In a listing agreement, the terms may include a percentage of the sales price or a flat fee, as well as conditions under which the broker earns that commission, such as the sale price achieving a certain threshold or the timeframe for the listing. This document allows both parties to have clear expectations regarding the broker's compensation for their services.

Other documents, like the purchase agreement, primarily focus on the terms of the sale between the buyer and the seller rather than the broker's commission, while the loan agreement deals with financing terms, and the seller's disclosure statement provides crucial information about the property's condition but does not address broker payment specifics.