Affiliate Broker Tennessee (TN PSI) National Practice Exam 2025 - Free Affiliate Broker Practice Questions and Study Guide

A listing agreement serves as a formal contract between a property owner and a real estate broker, outlining the terms under which the broker will market and sell the property. This agreement is crucial because it specifies important details such as the property being listed, the broker's responsibilities, the duration of the agreement, the commission structure, and any particular terms of the sale.

Establishing how the property will be marketed and the obligations of the broker in searching for potential buyers is central to the listing agreement. It fosters a clear understanding of what both parties can expect, which is vital for a smooth transaction process.

While determining the listing price of a property is a component of the selling process, it is not the primary purpose of the listing agreement itself. Similarly, setting a timeline for sale completion or including a non-compete clause may be factors in real estate transactions but are not fundamental functions of a listing agreement. The essence of the listing agreement lies in defining the relationship and expectations between the seller and the broker regarding the sale of the property.

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