What is a listing agreement?

A listing agreement is fundamentally an agreement between an agent and a seller, which establishes the terms under which the agent will represent the seller in the sale of the property. This contract outlines the responsibilities of the agent, including marketing the property, negotiating with potential buyers, and facilitating the transaction. It also specifies the duration of the agreement and the commission structure for the agent once the property is sold.

Understanding the role of the listing agreement is crucial for effective real estate transactions, as it formalizes the relationship between the agent and the seller, ensuring both parties are aligned on expectations and obligations throughout the sale process.