What are the Different Types of Real Estate Contracts?

Whether you're representing buyers, sellers, landlords, investors, or real estate agents, you'll encounter different types of real estate contracts for different purposes. Choosing the right agreement for your client's property dealing properly outlines rights, obligations, and terms between all parties, helping you avoid legal complications down the line.

What are real estate contracts?

Real estate contracts are legally binding documents between parties that outline terms for purchasing, selling, transferring, or renting property. A well-drafted agreement enforces local jurisdiction laws, ensuring every party adheres to their obligations. If terms aren't followed, one party can pursue litigation against the other. For more on managing these agreements at scale, see our guide to efficient real estate contract management.

Different types of real estate contracts

Purchase Agreement

Also called a sales contract, this is the standard agreement type for buying or selling property. It's a legally binding agreement between buyer and seller covering sale conditions, property description, purchase price, financing, contingencies, and disclosures. This is the contract most people mean when they refer to a real estate sales contract.

"We are able to draft and redline contracts inside the CLM tool. Therefore, we no longer need to rely exclusively on tools such as MS Word and Google Docs."
~Igor Poroger, Director of Legal (EMEA), Vectra AI

There are three common variations:

• Property-specific purchase agreement: customized for unique conditions like existing leases, development restrictions, or environmental concerns
• General purchase agreement: a simpler version used when both parties trust each other
• State/association purchase agreement: issued by a state real estate commission with standardized, state-specific terms

For a deeper breakdown, see our guide to purchase and sale agreements.

Listing Agreement

A listing agreement authorizes a real estate agent or broker to market and sell a property on the owner's behalf. It sets the listing price, the agent's commission, the listing period, and the marketing approach. Common variations include exclusive right-to-sell listings, where the agent earns commission regardless of who finds the buyer, and open listings, where the seller can work with multiple agents and only pays whoever closes the deal.

Rental Agreement

Best suited for renting a property short-term, for a matter of days or weeks. It defines the terms between landlord and tenant, including rent amount, security deposit, rental period, and due dates, helping avoid disputes over short stays.

Lease Agreement

Similar in structure to a rental agreement but for long-term occupancy, typically a year or more for residential and 3 to 25 years for commercial property. Terms generally can't be modified until the lease ends. Common lease types include:

• Commercial lease: for business use, like an office or retail space
• Absolute or full-service net lease: tenant covers rent plus maintenance, insurance, and taxes
• Rent-to-own: combines a lease with the right to purchase the property later
• Sublease: the original tenant leases part or all of the space to a subtenant, with protections if the subtenant defaults
• Single-tenant and multi-tenant triple-net leases: tenants cover taxes and exterior maintenance, common for standalone retail or multi-unit commercial property

Power of Attorney

Transfers decision-making rights for a property to another party, used when the owner is hospitalized, elderly, mentally incapacitated, or physically unavailable, such as an owner living abroad.

Real Estate Assignment Contract

Transfers the rights to a property transaction to a new buyer without transferring the title itself. The new buyer takes over the contract's obligations while the original party exits the deal. This is common in wholesaling, where an investor contracts to buy a distressed property, then assigns those rights to an end buyer at a higher price before the original purchase even closes.

Real Estate Partnership Agreement

Used between partners buying and managing property together. It defines ownership structure, capital contributions, profit and loss distribution, and buyout terms. Download a free partnership agreement template to get started.

Key elements of real estate contracts

"If you go through the hassle of creating definitions for key terms in the contract, stick with those definitions throughout the contract." ~Sterling Miller, CEO and Senior Counsel, Hilgers Graben PLLC

A well-drafted agreement should clarify:

• Identification of parties: buyer, seller, tenant, landlord, or any other involved party
• Assignor/assignee: for contracts transferring transaction rights
• Property description: address, size, and boundaries
• Rights and obligations: repairs, maintenance, and financial responsibilities
• Restrictions: subletting, pets, or permitted property use
• Financial terms: purchase price, rent, deposit, mortgage details, payment schedule
• Contingencies: financing, inspection, appraisal, title, or sale of an existing home
• Disclosures: known property defects, lead paint, and similar issues
• Termination: notice periods, expiration, renewal, and termination conditions
• Signatures: authenticated by all parties, often via encrypted eSignatures when multiple parties are involved

For a full checklist, see our contract drafting checklist, and if financing depends on another event, see what a contingent contract is.