Which document typically outlines the commission rates for real estate transactions?

The listing agreement is the document that typically outlines the commission rates for real estate transactions. This agreement is a contract between the property owner and the real estate agent or broker, which formalizes the terms under which the property will be sold. Within this document, the commission structure is specified, including the percentage of the sale price that will be paid to the agent upon the successful sale of the property.

This is crucial for both parties, as it sets expectations regarding payment for the services rendered in the process of marketing and selling the property. It is important to note that the purchase agreement is primarily concerned with the terms of the sale itself, such as price and contingencies, rather than the commission. Similarly, an inspection report focuses on the condition of the property, and a property disclosure statement provides information about any known issues with the home, neither of which would detail commission rates. Thus, the listing agreement serves a unique and significant role in specifying how agents are compensated.