What is a listing agreement?

A listing agreement is a written contract established between a property owner and a real estate agent. This contract authorizes the agent to represent the owner's interests in selling the property. It typically includes key details such as the duration of the agreement, the commission structure, and specific terms regarding how the property will be marketed.

By formalizing this relationship in writing, both the property owner and the real estate agent have clear expectations and obligations, creating a legal basis for the agent to act on behalf of the owner in selling the property. This structured approach not only provides legal protection but also ensures that both parties are committed to the transaction process.

In contrast, other options do not properly encompass the formal nature or purpose of a listing agreement. An informal arrangement might lack the binding commitment required for an effective transaction. A verbal agreement to show property does not carry the same weight as a written contract and may lead to misunderstandings or legal issues down the line. Lastly, a document that outlines property taxes does not pertain to the listing of a property, as it focuses solely on tax obligations rather than the representation and marketing of a property for sale.