What is a 'listing agreement'?

A 'listing agreement' is a vital document in the real estate industry that establishes the relationship between a property owner and a real estate agent. It details the terms under which the agent is authorized to market and sell the property on behalf of the owner. This agreement typically includes the duration of the listing, the asking price of the property, and the commission structure for the agent.

By formalizing the relationship, the listing agreement provides legal protection for both parties and outlines their respective rights and obligations throughout the sales process. It ensures that the real estate agent has the authority to act on the owner's behalf, which is necessary for conducting showings, negotiating offers, and ultimately transferring the property title.

The other options refer to different types of agreements or documents that do not pertain specifically to the sale of a property by an agent, which is the core purpose of a listing agreement.