What is a listing agreement in real estate?

A listing agreement in real estate is a contract that outlines the terms and conditions under which a property is being offered for sale. It typically includes details such as the listing price, the duration of the agreement, the duties of the real estate agent, and the commission structure. This document establishes a formal relationship between the property owner (the seller) and the real estate agent or broker, granting the agent authority to represent the seller in the property sale process.

By clearly defining expectations and responsibilities, the listing agreement serves as a crucial tool in ensuring both parties understand their roles in the transaction. This allows the agent to effectively market the property, negotiate with potential buyers, and ultimately facilitate the sale.

In contrast, tenant responsibilities, agreements between lenders and borrowers, and property tax assessment forms serve entirely different purposes in the real estate field. They do not pertain to the process of marketing and selling a property, which is the primary focus of a listing agreement.