What is a listing contract in real estate?

A listing contract in real estate is fundamentally an employment agreement in which a property owner authorizes a broker to represent them in the process of selling their property. This contract outlines key aspects such as the terms of the listing, the duration for which the broker will represent the seller, the commission structure, and the responsibilities of both the seller and the broker.

This agreement is crucial because it formally establishes the relationship between the seller and the broker, ensuring that the broker is allowed to market the property and facilitate the transaction, ultimately aiming to find a buyer. With this authorization, brokers can utilize various resources and marketing strategies to promote the property effectively.

In contrast, the other options describe different types of agreements that do not pertain specifically to the role of a broker in selling property. For example, a fixed-term rental agreement is related to leasing, a document detailing property ownership does not cover the aspect of engaging a broker, and a contract specifying the selling price, while relevant to transactions, lacks the element of authorizing a broker's services. Thus, the essence of a listing contract lies in its role as a formal employment agreement for real estate brokerage services.