A listing agreement is a written contract in which a property owner hires a real estate brokerage to market and sell their home. It establishes the agency relationship, sets the listing price, defines the commission, and specifies the length of the listing period.
The most common form is the exclusive right to sell agreement, under which the brokerage earns a commission if the property sells during the term regardless of who finds the buyer. Other forms, such as exclusive agency or open listings, give the seller more room to sell on their own.
The agreement also grants the agent authority to list the property in the MLS, market it, and represent the seller's interests. It defines the obligations of both parties and is the legal foundation of the seller-agent relationship.