What is the primary role of a listing agreement?

The primary role of a listing agreement is to grant authority to sell on behalf of the owner. This legal document creates a formal relationship between the property owner and the real estate broker, empowering the broker to represent the owner's interests in selling their property. The listing agreement specifies the terms of the sale, including the price, duration of the agreement, and the responsibilities of both parties.

Through this agreement, the broker gains the right to market the property, engage potential buyers, and negotiate offers. It is a crucial step in the real estate selling process, as it establishes clear expectations and obligations for both the seller and the broker, ensuring that the sale is conducted in an organized and professional manner. Other options, such as establishing a rental arrangement, outlining building maintenance duties, or finalizing a sale transaction, do not accurately reflect the primary purpose of a listing agreement, which is specifically focused on the sale of the property.