Question 21

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 specific type of agreement where the seller authorizes a real estate agent to sell their property, detailing the property description, commission structure, and the duration of the contract.

A) an offer to purchase

An offer to purchase is a proposal made by a buyer to a seller, indicating the buyer's intent to buy the property at a specified price. However, it does not include the commission details or the expiration date, nor is it signed by the seller in the same context as a listing contract.

B) a contract to sell

A contract to sell typically refers to a legally binding agreement between the buyer and seller regarding the sale of property. While it outlines the terms of the sale, it does not specifically address the commission or the seller's authorization for an agent, making it distinct from a listing contract.

C) a listing contract

A listing contract is the correct answer as it explicitly describes the property, outlines the commission to be paid, states an expiration date, and is signed by the seller to authorize the real estate agent to act on their behalf in selling the property.

D) an option agreement

An option agreement provides a potential buyer the right to purchase a property at a specified price within a certain timeframe. It does not describe the property in the context of selling it via an agent, nor does it include commission details or a seller's authorization for the agent.

Conclusion

The listing contract is the only option that encompasses all the required elements: a description of the property, commission details, an expiration date, and the seller's signature. Other options either refer to different types of agreements or lack critical components necessary for a listing arrangement. Therefore, it is clear that option C is the definitive correct answer.