What distinguishes a listing agreement from a buyer’s agency agreement?

A listing agreement is fundamentally different from a buyer's agency agreement primarily in whom they represent. The key distinguishing feature is that a listing agreement is established to represent the seller in the sale of a property, giving the agent the authority to market the property and negotiate offers on behalf of the seller. Conversely, a buyer's agency agreement is designed to represent the interests of the buyer, enabling the agent to assist in finding suitable properties, negotiating offers, and guiding the buyer through the purchasing process.

Understanding this core principle is essential for real estate professionals, as it lays the groundwork for agency relationships and the fiduciary duties owed to clients in these distinct roles. Each agreement sets up the parameters under which the agent operates and how they advocate for their client's best interests in a real estate transaction.

While some other choices contain statements that may reflect specific practices or commonalities in real estate, they do not accurately represent the fundamental difference in the roles of the parties involved in the agreements.