Final answer:
The listing agreement is a legally binding contract between a real estate agent and a property owner.
Step-by-step explanation:
The statement that the listing agreement is not legally binding is FALSE. A listing agreement is a contract between a real estate agent and a property owner, stating that the agent has the right to market and sell the property on behalf of the owner. The agreement is legally binding and outlines the terms and conditions of the agent's services and the owner's obligations. If either party fails to fulfill their obligations, they can be held legally responsible.
For example, if a property owner decides to withdraw from the agreement without a valid reason, they may be liable to pay the agent's commission as stated in the contract. Similarly, if the agent does not fulfill their marketing and selling duties as outlined in the agreement, the owner may have grounds to terminate the contract and seek legal action.
Therefore, it is important for both parties to carefully review and understand the terms of the listing agreement before signing, as it is a legally binding contract.