What is a "listing agreement"?

A listing agreement is a written contract between a property owner and a real estate broker that establishes the broker’s authority to represent the owner in the sale of the property. This agreement outlines the terms under which the broker will market the property, the duration of the agreement, and the commission that the broker will earn upon the successful sale of the property.

In the context of real estate transactions, it's essential that the listing agreement is in writing because it serves as a formal record of the relationship between the owner and the broker, which helps ensure that both parties are aware of their rights and obligations. This clarity is crucial in real estate dealings, helping to prevent misunderstandings and disputes.

The other choices do not accurately describe a listing agreement. A contract for leasing property only pertains to rental situations and does not encompass the sale of real estate. Similarly, a document to list investment property, while it may imply some form of listing, lacks the specificity and formal nature of a listing agreement. Lastly, a verbal agreement for services is not enough in real estate; state laws typically require written agreements for real estate transactions to protect the interests of both parties.