What defines a "listing agreement"?

A listing agreement is a fundamental document in real estate transactions, serving as a contract between a property owner and a broker. It grants the broker the authority to market and sell the property on behalf of the owner. This agreement delineates the responsibilities of the broker, including promoting the property, conducting showings, and facilitating negotiations. It establishes a professional relationship where the broker is incentivized to sell the property efficiently and effectively, often in exchange for a commission based on the sale price.

While other factors, such as the time frame for selling and associated fees, may be included within the broader context of a listing agreement, the defining characteristic of this document is its role in granting marketing authority to the broker. It is essential for both the property owner and the broker to clearly understand the terms outlined in the listing agreement to ensure a smooth selling process. The mention of title insurance is unrelated to the purpose of a listing agreement, as that pertains more to protecting the buyer's financial interest in the property rather than the marketing and sale process itself.