Final answer:
The party that the listing contract is with is known as the seller or the listing principal, not the subordinate. This contract authorizes a real estate broker to represent the seller and find a buyer under specified terms. Understanding the details of this agreement is crucial when selling a property.
Step-by-step explanation:
In the context of real estate, the listing contract is an agreement between a property owner and a real estate broker authorizing the broker to represent the seller and find a buyer for the property on terms specified in the contract. The party that the listing contract is with is not referred to as the subordinate; rather, this party is known as the seller or the listing principal. The terms of the listing agreement typically include details such as the list price, the duration of the contract, and the commission that will be paid to the broker.
When a property owner signs a listing agreement, they are entrusting the real estate professional with the responsibility of marketing the property and negotiating with potential buyers on their behalf. This professional representation is essential as it can greatly influence the sale process and the eventual sale price of the property. It's important for anyone considering selling a property to fully understand the terms and implications of their listing contract with their real estate agent or broker.