be parties to a sales contract must wait until the broker prepares a “set up” sheet with the basics of the transaction, contacts the Seller’s attorney, assuming one has already been selected, then wait again until a draft contract is sent from the Seller’s attorney to the Buyer’s attorney.

A wide body of federal statutes and state statutory and common law all govern real estate transactions. The requirements established by state law often differ significantly from one state to the next.

Real estate brokers are employed as the agent of the seller in order to obtain a buyer for their property. The contract between the broker and seller is called a listing agreement. The agreement may be an open agreement where by the broker earns a commission only if he or she finds a buyer. A listing is exclusive if the broker is the only agent entitled to a commission for finding a buyer. Under an exclusive arrangement a broker may be entitled to a payment even if the seller finds the buyer without the brokers aid. Real estate brokers and salesperson are licensed and regulated by local state laws. Professional organizations may also provide further guidelines.

It is commonly required in real estate contracts that the title to the property sold be marketable. This requires that the seller have proof of title to all the property he or she is selling and that third parties not have undisclosed interests in the title.