Definition - What does Listing Agreement mean?
A listing agreement is a contractual agreement that authorizes a real estate broker to try to sell a property owned by another person. Listing agreements are necessary for the sale of property using an agent because agents need legal permission from the property owner to act on his or her behalf.
Justipedia explains Listing Agreement
Real estate agents typically receive a commission upon the successful sale or lease of a property. To earn this commission, they usually have to find buyers, show the buyers the property and convince the buyers that buying the property is a good idea. Property owners commonly use real estate agents so that they don't have to do all of that work themselves. Listing agreements are simply the formal deal that is worked out between the property owner and the real estate agent.
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