What is the role of a listing agreement in real estate?

The role of a listing agreement in real estate is primarily to establish a formal contract between a property owner and a real estate agent, granting the agent the authority to list the property for sale. This agreement outlines critical details such as the property’s selling price, the duration of the agreement, the responsibilities of the agent, and any commissions or fees involved. By empowering the agent to market the property, negotiate offers, and represent the seller's interests, the listing agreement serves as a foundational document in the real estate transaction process.

Recognizing that other options focus on different aspects of real estate transactions is important. For instance, a mortgage agreement relates to financing a property purchase, while disclosure documents provide transparency regarding property condition. Rental agreements govern lease terms between landlords and tenants, which is unrelated to the selling process that a listing agreement addresses.