What is a "listing agreement"?

A listing agreement is fundamentally a contract between a property owner and a broker that grants the broker the authority to represent the owner in the sale of the property. This agreement outlines the terms and conditions under which the broker can market and sell the property, including the listing price, the duration of the agreement, and the commission structure for the broker upon the successful sale of the property.

One key aspect of a listing agreement is that it establishes a fiduciary relationship between the broker and the property owner, meaning the broker is obligated to act in the best interests of the owner throughout the process of selling the property. This includes marketing strategies, negotiating offers, and providing market analysis.

While other options provide related concepts, they do not encompass the definition of a listing agreement. A document that lists available properties for sale refers more to a marketing tool rather than the legal authority granted by a listing agreement. A type of agency agreement could be a broader category, but it doesn’t specifically capture the unique purpose of a listing agreement. Similarly, a report about property market trends is a separate analytic document that does not involve the contractual relationship between the broker and the property owner. Thus, the comprehensive nature of a listing agreement firmly establishes it as the correct answer to the question.