What type of document is commonly used to establish agency at the broker level?

The listing agreement is a crucial document used in real estate to establish the agency relationship between a broker and a property owner. This formal contract outlines the terms under which the broker will represent the seller in the marketing and sale of their property. It specifies the responsibilities of both parties, including the broker's authority to act on behalf of the seller, the agreed commission structure, and the duration of the agreement.

By signing the listing agreement, the property owner grants the broker the legal authority to negotiate offers and make decisions regarding the sale of the property. This document is not merely a contract; it also serves to clarify the duties and expectations, ensuring all parties are aware of their roles within the transaction. In essence, it solidifies the business relationship necessary for effective and legally sound representation in real estate transactions.

Other documents, such as performance agreements, commission agreements, or employment letters, may serve specific purposes but do not function as the primary means of establishing the agency relationship at the broker level in the context of real estate.