Question 39

A listing contract describes the property, states the amount of commission to be paid, states an expiration date, and is signed by the seller.

A listing contract is a formal agreement between a seller and a real estate agent or broker, detailing the property for sale, the commission fees, and the duration of the agreement, thereby being the most comprehensive choice.

A) an offer to purchase

An offer to purchase is a proposal made by a buyer to acquire property, which does not typically include details about commission or an expiration date as it is primarily focused on the buyer's intent rather than a seller's agreement.

B) a contract to sell

A contract to sell is a legal agreement between a buyer and seller outlining the terms of the sale, but it lacks the specific elements of commission and expiration date that are essential features of a listing contract.

C) a listing contract

A listing contract is specifically designed to describe the property, outline the commission to be paid to the agent, state an expiration date, and is required to be signed by the seller, making it the correct answer.

D) an option agreement

An option agreement gives a buyer the right to purchase property at a later date, but it does not serve the purpose of detailing commission or requiring the seller's signature as a listing contract does.

Conclusion

The listing contract is the only option that comprehensively includes all necessary elements: property description, commission details, expiration date, and seller's signature. Other options fail to meet one or more of these critical criteria, confirming that C is definitively the correct answer.