Which document is essential for a broker to legally represent property sellers?

The Listing Agreement is the critical document that legally allows a broker to represent property sellers. This agreement establishes a formal relationship between the seller and the broker, granting the broker the authority to market and sell the property on the seller's behalf. It outlines the terms of the relationship, including the broker's responsibilities, the commission structure, and the time frame for the listing. Through this document, the broker acts as the seller’s agent, representing their interests in the sale process and working to secure the best possible deal.

The Purchase and Sale Agreement, while essential in the transaction process, is typically used after the seller has agreed to terms with a buyer. An Option Agreement relates to the right to purchase a property at a later date but does not establish agency for the broker. A Lease Agreement pertains to rental agreements, not the sale or representation of property ownership. Thus, the Listing Agreement is indispensable for legal representation in the selling process.