What does the term "listing agreement" refer to in real estate?

The term "listing agreement" specifically refers to a contract established between a property owner and a real estate broker, which grants the broker the authority to market and sell the owner’s property. This agreement outlines the terms of the relationship, including the responsibilities of both parties, the duration of the agreement, the commission structure, and other pertinent details related to the sale.

This is foundational in real estate transactions as it offers legal protection and clarity to both the property owner and the broker. It ensures that the broker has the right to actively seek buyers and negotiate on behalf of the owner while also establishing the expectations for how the property will be marketed and sold.

In contrast, the other potential answers refer to different concepts related to real estate but do not accurately encapsulate the purpose or function of a listing agreement. A formal evaluation of a property's market value is typically conducted through an appraisal process, while rental agreements pertain to different legal documents governing lease arrangements. Guidelines for agent conduct, while important for professional practice, do not pertain to the specifics of a listing agreement.