Agency

In Illinois, what is a 'listing agreement' and what type of agency does it create?

AA contract between buyer and seller; creates no agency relationship
BA contract between a seller and a brokerage authorizing the brokerage to market the property; creates an agency relationship with the seller✓ Correct
CA contract between two brokerages to cooperate on a sale; creates dual agency
DAn MLS registration form; creates a non-agency relationship

Explanation

A listing agreement is a contract between a seller (principal) and a real estate brokerage (agent) authorizing the brokerage to market and sell the property. It creates an agency relationship where the brokerage owes fiduciary duties to the seller. The listing agreement specifies the listing price, duration, compensation, and the parties' obligations.

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