Real estate transactions are governed by a large body of federal statutes and state statutory and common law.
Requirements established by state law are often different 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 agreement between these two parties is referred to as the listing agreement . The agreement or contract between buyer and seller to sell a particular piece of real estate is governed by the general principles of contract law. It is common to require in real estate contracts that the title to the property being sold is marketable which requires that the seller have proof of title. A title insurance company or an attorney is often employed by the buyer to investigate whehter the title is marketable.