What is a listing agreement?

A listing agreement is specifically a contract between a property owner and a broker, granting the broker the authority to sell the property on behalf of the owner. This agreement outlines the terms and conditions under which the broker will operate, including the broker's responsibilities, the duration of the agreement, and the commission structure. This relationship is foundational in real estate transactions, as it establishes the broker's role and how they will represent the owner in the market.

The other options refer to different aspects of real estate transactions. For instance, determining the selling price of a property is often part of the broader strategy discussed within a listing agreement, but it is not the essence of the agreement itself. A legal agreement between a buyer and a seller pertains to the sales contract that occurs after a property is under contract, which is different from the listing agreement. Closing costs are detailed in the financial aspects of a transaction but are unrelated to the purpose or function of a listing agreement. Thus, the definitive nature of a listing agreement lies in its role as the document that establishes the broker-owner relationship for selling a property.