Minnesota State Real Estate Practice Test 2025 - Free Real Estate Practice Questions and Study Guide

A listing agreement in real estate is a contract between a property owner and a real estate broker wherein the broker is authorized to represent the owner in the sale of the property. This agreement is fundamental in the real estate process because it establishes the terms under which the broker will market the property, including the listing price, the duration of the agreement, and the commission structure. It serves to protect the interests of both the property owner and the broker, as it clarifies the rights and responsibilities of each party.

The other options do not accurately describe a listing agreement. A document outlining taxes pertains to fiscal responsibilities regarding the property, while a mortgage application form relates to financing the purchase rather than selling it. An assessment of a property's market value is an evaluation designed to determine how much a property should sell for but does not involve a contractual relationship for listing the property.