What is the purpose of a listing agreement?

The purpose of a listing agreement is primarily to contract a seller with a real estate agent for marketing their property. This legal document outlines the terms and conditions under which the real estate agent will represent the seller in the sale of their property. It specifies the agent's responsibilities, the duration of the agreement, the commission structure, and any other relevant details that govern the relationship between the seller and the agent.

By formalizing this relationship, a listing agreement enables the real estate agent to actively market the property, list it on multiple platforms, and negotiate with potential buyers on behalf of the seller. This ensures that the seller has professional guidance throughout the selling process, increasing the chances of a successful transaction.

The other options do not align with the primary function of a listing agreement, which is specifically focused on the sale of real estate rather than rental agreements, auction processes, or financial budgeting.