What is a "Listing Agreement" in real estate?

A "Listing Agreement" in real estate is fundamentally a contract between a property owner and a real estate broker. This agreement officially establishes the broker's right to market the property for sale on behalf of the owner. It details the terms of engagement, including the duration of the listing, the commission rate for the broker, and other pertinent obligations and rights of both parties.

This contract is crucial because it forms the basis of the relationship between the seller and the broker, allowing the broker to act in the interests of the owner to promote the sale of the property effectively. It typically includes provisions for how the property will be listed in the Multiple Listing Service (MLS), advertising strategies, and other marketing efforts that the broker will undertake.

The other choices do not accurately describe what a Listing Agreement entails and thus, do not align with the established practices in real estate transactions. A Listing Agreement is specifically about the relationship and agreement between sellers and brokers, rather than proposals from buyers, mortgage specifics, or appraisal processes, all of which fall under entirely different arrangements in real estate.