What is a "listing agreement"?

A listing agreement is fundamentally a contract between a property owner and a broker that grants the broker the authority to sell or lease the property on behalf of the owner. This agreement outlines the terms of the relationship, including the broker's duties, the duration of the agreement, and the commission structure. The property owner relies on the broker's expertise to market the property effectively, attract potential buyers, and facilitate the transaction process.

In the context of real estate, this legal document is crucial as it establishes the broker's right to earn a commission upon the successful sale of the property, which aligns the interests of both parties in the transaction. It also defines the specific strategies the broker may employ to sell the property, like marketing tactics and open house schedules.

Other options do not capture the essence of a listing agreement. While an arrangement between a buyer and seller is part of the buying process, it does not relate specifically to a broker's role. A schedule of property viewings or a daily record of property sales might be useful tools during the process but are not contractual agreements like a listing agreement.