Which role does a listing play in real estate transactions?

• A. It binds the buyer to purchase
• B. It exists to transfer title
• C. It designates the broker as agent to market the property
• D. It sets the property tax rate

Answer: (C)

A listing establishes the broker as the seller’s agent who will market the property. It is the contract that gives the broker authority to represent the seller, handle showings, advertise the property, field inquiries, and negotiate offers on the seller’s behalf. It also outlines important terms like how long the broker has that authority and how the broker will be compensated. Because of this, the listing’s role is to designate the broker as the agent to market the property.

It does not bind the buyer to purchase—that happens through a separate purchase agreement with the seller. It does not transfer title—that occurs at closing with a deed after a successful sale. It does not set the property tax rate—that is determined by local taxing authorities.