North Carolina Post Licensing 303 Test 2025 – 400 Free Practice Questions to Pass the Exam

A listing agreement in real estate is fundamentally defined as a contract between the property owner and a broker to sell the property. This contract outlines the terms under which the broker agrees to represent the owner in the sale of their property. It includes important details such as the listing price, duration of the agreement, and the responsibilities of both parties.

In a listing agreement, the property owner grants the broker the authority to market the property, attract potential buyers, and negotiate on their behalf. This agreement is crucial because it formally establishes the relationship between the owner and the broker, detailing the obligations and expectations of both parties during the selling process. It also typically includes the commission rate that the broker will earn upon the successful sale of the property.

The other options refer to different types of agreements or legal documents that do not pertain to the sale of real estate through a broker. For example, a formal invitation to bid on a property is not a binding agreement like a listing contract is, and agreements to lease a property or documents binding tenants to a lease apply to rental situations, not sales. Therefore, the definition of a listing agreement as a contract to sell property aligns appropriately with its purpose and legal standing in real estate transactions.