What is a "listing agreement" in real estate?

A listing agreement in real estate is a formal contract between a property owner and a real estate broker that allows the broker to market the property for sale on behalf of the owner. This type of agreement details the terms of the representation, including the duration, the commission structure, and the responsibilities of both the broker and the property owner. By establishing this contractual relationship, the broker is granted the authority to negotiate and facilitate the sale of the property, ensuring that both parties are legally protected throughout the process.

The other options do not accurately describe what a listing agreement entails. A verbal agreement, while it can establish an understanding, does not provide the legal protections or formalities of a written contract. A contract between a buyer and seller refers to a purchase agreement, which comes into play after a buyer agrees to buy a property, rather than when a property is being listed for sale. A lease agreement pertains specifically to rental properties and governs the terms of renting, rather than selling, a property. Each of these options highlights different aspects of real estate transactions, but only the contract between a property owner and a real estate broker captures the essence of a listing agreement.