What is a "listing agreement" in real estate?

A listing agreement in real estate is a specific type of contract between a property owner and a real estate broker. This contract grants the broker the authority to act on behalf of the property owner to sell the property. The agreement typically details the terms of the listing, including the duration, the commission rate, and the responsibilities of both parties. By signing this agreement, the property owner provides the broker with the right to market the property to potential buyers, facilitating the sale process.

This contract is crucial in establishing a professional relationship and ensuring that both the owner and the broker understand their roles and obligations in the transaction. It serves as the foundation for the broker to promote the property effectively and negotiate on behalf of the seller, making it an essential aspect of the real estate transaction process.