Final answer:
An option listing agreement where by the broker purchases the property then resells it for profit requires an 'option contract', where the broker has the right to buy the property at a set price within a timeframe, aiming to resell at a higher price.
Step-by-step explanation:
An option listing agreement where the broker purchases the property from the seller and then resells the property, making a profit on the resale, requires what is known as an 'option contract'.
This type of agreement allows the broker the right, but not the obligation, to purchase the property at a specified price within a certain time frame. If they can resell it at a higher price, they can exercise the option, buy the property, and make a profit on the resale.
However, it's crucial to understand that this involves significant risk for the broker since they must be able to resell the property at a profit to justify the initial purchase.