Final answer:
A hold harmless clause in a listing agreement protects the listing broker from liability for claims or damages arising from the seller's actions or representations.
Step-by-step explanation:
A hold harmless clause in a listing agreement is a provision that protects the listing broker from liability for claims or damages arising from the seller's actions or representations. If the seller signs a hold harmless clause, it means that they are taking responsibility for any potential legal issues that may arise from the sale of the property.
For example, if the seller provides false information about the property and a buyer sues the broker for misrepresentation, the hold harmless clause would protect the broker from being held liable for the seller's actions.
By signing a hold harmless clause, the seller assumes the risk and releases the broker from any legal claims or damages that may occur during the transaction.