What defines a listing contract in real estate?

A listing contract in real estate is an agreement between a broker and a property owner that formally establishes the terms under which the broker will represent the owner in the sale or lease of their property. This contract outlines important details such as the listing price, the duration of the agreement, the responsibilities of both parties, and the commission structure for the broker upon a successful transaction.

This contractual relationship ensures that the broker is authorized to market the property, negotiate offers, and facilitate the transaction. It provides legal backing to the broker's actions and represents the owner's commitment to work with the broker for the sale or lease of their property.

The other options presented do not accurately represent the nature of a listing contract in real estate. For example, detailing terms of hire for any salesperson does not encapsulate the specific focus on the relationship between a broker and a property owner. Furthermore, a temporary employment contract for realtors refers to employment conditions rather than a property listing agreement. Lastly, an informal agreement to list a property on social media lacks the legal basis and specificity that a formal listing contract entails.