Which of the following describes the primary function of a listing agreement?

• A. It binds the seller to a deed transfer
• B. It authorizes the broker to market the property on behalf of the seller
• C. It transfers listing rights to another broker
• D. It requires the buyer to sign a purchase agreement

Answer: (B)

A listing agreement primarily establishes the agency relationship and gives the broker the authority to market the seller’s property for sale. It authorizes the broker to advertise, show the property, handle negotiations, and present offers on the seller’s behalf, and it usually outlines the commission and duration. This permission to act in the seller’s name is the core function that enables the marketing and sale process to proceed. The deed transfer happens at closing, not because of the listing agreement. Transferring listing rights to another broker would require a separate arrangement, and the buyer signs a purchase agreement separately, not as part of this document.