What term describes an agreement between a seller and a real estate broker that authorizes the broker to sell the property on specified terms in return for a sales commission if the broker is successful?

• A. A commission agreement
• B. A sale agreement
• C. A listing contract
• D. An exclusive right of sale

Answer: (C)

A listing contract is the agreement where the seller hires a real estate broker to market and sell the property on agreed terms in exchange for a commission if a sale closes. It creates the broker’s authority to act as the seller’s agent during a defined period, outlining key details such as the listing price or terms, duration of the listing, and how the commission will be paid. The broker earns the commission if a sale occurs within the listing period as defined in the contract. This term is broad enough to cover different forms—exclusive right to sell, exclusive agency, or open listing—yet it specifically describes the instrument between seller and broker that authorizes marketing and sets the commission. The other options don’t capture this exact relationship: a commission agreement focuses only on payment terms, a sale agreement is between buyer and seller for the purchase, and an exclusive right of sale is a particular type of listing contract rather than the general instrument describing the seller–broker relationship. In Florida, this agreement must be in writing to be enforceable.