Final answer:
Any agreement that authorizes or employs a licensee to sell or purchase real estate for compensation must be a real estate contract.
Step-by-step explanation:
Any agreement that authorizes or otherwise employs a licensee to sell or purchase real estate for compensation must be a real estate contract. A real estate contract is a legally binding agreement that outlines the terms and conditions of a real estate transaction, including the responsibilities of the parties involved and the compensation agreed upon.
For example, if a property owner wants to sell their house, they may enter into a real estate contract with a licensed real estate agent. The agreement would authorize the agent to list and market the property for sale and would outline the commission or fee that the agent will receive upon the successful sale of the property.
It is important for such agreements to be in writing and signed by all parties involved for them to be legally enforceable.