What is a "listing agreement"?

A listing agreement is fundamentally a contract that designates a broker as an agent for the seller of a property. In this type of agreement, the property owner (often referred to as the principal) authorizes the broker to represent them in the sale of their property. This includes tasks such as marketing the property, negotiating sale terms, and handling paperwork associated with the transaction.

Listing agreements can vary in type, such as exclusive right to sell or open listings, but at their core, they revolve around the relationship between the seller and the broker, allowing the broker to take specific actions on behalf of the seller. This makes option B correct, as it encapsulates the essence of a listing agreement in the realm of real estate transactions.

The other options do not accurately define a listing agreement. An agreement to lease property for rental income pertains to a leasing agreement rather than a listing agreement. A document for transferring property ownership refers to deeds or conveyance documents, which are separate from listing agreements. Lastly, a financial statement for property taxes deals with taxation and does not relate to the agency relationship established by a listing agreement.