What is a Listing Agreement?

A listing agreement is fundamentally a written authorization to sell real estate, which establishes a legal relationship between the seller and the real estate broker. This document outlines the terms and conditions under which the broker is granted the right to market and sell the property on behalf of the seller. It typically includes details such as the listing price, the duration of the agreement, and the commission to be paid upon the sale of the property.

By defining the scope of work for the broker, the listing agreement ensures that both parties have a clear understanding of their obligations and expectations. Moreover, this agreement protects the seller by ensuring that their property is marketed effectively while also giving the broker a fiduciary duty to represent the seller's best interests throughout the transaction process.