What is the primary purpose of a listing agreement?

The primary purpose of a listing agreement is to outline the terms of sale between the seller and the broker. This legal document establishes the relationship between the seller and the broker and sets forth the conditions under which the broker will represent the seller in the sale of the property. It typically includes details such as the listing price, the duration of the agreement, the commission structure, and other important terms related to the marketing and sale of the property.

By clarifying these terms, the listing agreement serves as a foundational tool that governs the expectations and responsibilities of both parties throughout the real estate transaction process. Understanding the specifics laid out in this agreement ensures that both the seller and the broker are aligned in their objectives and helps to facilitate a smoother selling process.