What is a listing agreement in real estate?

A listing agreement in real estate is a contract between a property owner and a real estate broker that establishes the terms under which the broker will market and sell the owner's property. This agreement typically outlines important details such as the listing price, the duration of the agreement, the responsibilities of both parties, and the commission structure the broker will receive upon the sale of the property. It serves as a formal arrangement that authorizes the broker to act on behalf of the property owner, facilitating the sale process and providing legal protection for both parties involved.

In contrast, a general information brochure about a property provides potential buyers with details and highlights of the property but does not create a binding relationship between the owner and the broker. A document to lease property for rent pertains to rental agreements rather than the sale of property, thus falls outside the context of a listing agreement. Additionally, a marketing plan for selling a home may be part of the strategy employed by a broker but does not itself constitute a contractual relationship like a listing agreement does.