What document typically outlines the responsibilities and commission agreements between a broker and the client?

The listing agreement is the document that typically outlines the responsibilities and commission agreements between a broker and the client. This legal contract establishes the relationship between the broker and the property owner, detailing the services the broker will provide, the duration of the agreement, and the commission structure. It serves as a formal understanding of what is expected from both parties throughout the process of selling the property, including marketing strategies and negotiation terms.

In contrast, the purchase agreement is designed to facilitate the actual sale of a property once a buyer has been found, outlining the terms under which the buyer agrees to purchase the property from the seller. The property disclosure statement is a document that sellers are usually required to complete to disclose any known issues with the property, but it does not pertain to the relationship or agreement between the broker and the client. Lastly, the closing statement summarizes the financial transactions that occur at closing but does not define the broker-client relationship or commission structure. Thus, the listing agreement is the primary document for establishing those key aspects in real estate transactions.