Question

Mary is a real estate broker who is looking to enter into a listing agreement to sell David's house. What is the purpose of a listing agreement?

1) To establish the terms and conditions of the sale
2) To determine the listing price of the house
3) To market and advertise the property
4) To negotiate with potential buyers

Answer 1

A listing agreement in real estate is a contract between a seller and a real estate agent to establish the terms and conditions of selling a property, including marketing, negotiating, and determining the listing price.

Step-by-step explanation:

A listing agreement in real estate is a contract between a seller and a real estate agent, like Mary, that outlines the terms and conditions of selling the property. The purpose of a listing agreement is to establish the terms and conditions of the sale, such as the duration of the agreement, the commission rate, and any special conditions. It also allows the agent to market and advertise the property to potential buyers, negotiate on behalf of the seller, and determine the listing price based on market analysis and the seller's goals.