What is a "listing agreement" in real estate?

A listing agreement is fundamentally a contract between a seller and a broker that authorizes the broker to represent the seller in the sale of the property. This agreement outlines the terms under which the broker will market and sell the property, including details such as the listing price, the duration of the agreement, and the commission to be paid upon the sale of the property. It serves as a legal foundation that enables the broker to act on behalf of the seller, allowing them to showcase the property, negotiate with potential buyers, and handle various aspects of the sale.

This concept is crucial because it establishes the broker's authority and responsibility in the selling process, ensuring that both parties have a clear understanding of their roles and obligations. The other choices do not align with the definition of a listing agreement, demonstrating the specific relationship that exists between the seller and the broker, rather than involving buyers, tenants, or contractors.