What is a "listing agreement" in real estate transactions?

A "listing agreement" is a formal contract between a property owner and a real estate broker that grants the broker the authority to represent the owner in the sale of their property. This agreement outlines the terms and conditions under which the broker can market the property, including the listing price, duration of the agreement, and any specific responsibilities or services provided by the broker.

The listing agreement serves as a crucial document in real estate transactions, as it establishes a legal relationship and sets the expectations for both the property owner and the broker. It helps ensure that the property will be marketed effectively and that the owner's interests are protected throughout the selling process.

The other options do not accurately describe a listing agreement; a contract to purchase property refers to a completely different type of agreement, while a verbal agreement does not typically hold the same legal enforceability as a written contract. Additionally, a leasing contract is related to renting rather than selling real estate. The distinction is essential for understanding the roles and rights of parties involved in real estate transactions.