What is a listing agreement?

A listing agreement is a legally binding contract between a property owner and a real estate agent that grants the agent the authority to act on behalf of the owner to sell or lease the property. This agreement outlines the terms and conditions under which the agent will market the property, including details such as the listing price, the duration of the agreement, and the commissions that will be earned by the agent upon the successful sale or lease of the property. It serves as the foundational document that establishes the professional relationship between the seller and the agent, ensuring both parties understand their rights and obligations throughout the process.

The other options do not accurately represent what a listing agreement entails. A contract for property inspection services, for instance, pertains to different services related to assessing a property's condition. A document showing title insurance coverage focuses on the protection of ownership interests rather than the marketing or selling of property. Lastly, a form for property appraisals is related to determining the value of a property but does not involve the terms of the sale or the authority of an agent to act on behalf of the owner.