What is defined as a “listing agreement” in real estate?

A listing agreement is specifically defined as a contract between a property owner and a broker to sell the property. This formal agreement outlines the terms under which the broker will represent the seller in selling their property. It includes details such as the listing price, the duration of the agreement, the commission the broker will earn, and the responsibilities of both parties.

Understanding this definition emphasizes the professional relationship established in the real estate market, as it is key for brokers to have formal agreements to conduct business legally and effectively. The nature of this contract provides clarity and protection for both the property owner and the broker, ensuring that all parties involved have clearly defined expectations and obligations.

The other options do not fit the specific definition of a listing agreement. While a contract for renting a property is a legitimate real estate document, it pertains to lease agreements rather than sales. A verbal agreement among friends lacks the legal standing of a formal contract and therefore would not be recognized as a listing agreement. Lastly, an agreement made by a real estate agent to represent buyers only pertains to buyer agency agreements, which again is distinct from a listing agreement focused on the seller's interests.