What does a listing agreement establish between a seller and a broker?

A listing agreement is a vital document that outlines the relationship between a seller and a broker. This agreement primarily establishes the duties and obligations of the broker in representing the seller in the real estate transaction. It specifies the responsibilities the broker must undertake, such as marketing the property, negotiating offers, and providing various services essential to the selling process.

While the listing agreement may touch upon other aspects of the sale, such as price or terms, its primary focus is to delineate the broker's role and responsibilities in facilitating the sale. By clearly defining what the broker is expected to do, the listing agreement helps ensure that both parties have a mutual understanding of their relationship and the expected services to be provided. This clarity is crucial for effective cooperation and successful transactions.