What is the primary difference between a listing agreement and a buyer’s agreement?

The primary difference between a listing agreement and a buyer’s agreement lies in the purpose and the party each agreement serves. A listing agreement is specifically designed to authorize a real estate broker to represent the seller in the sale of a property. It grants the broker the right to market the property, negotiate offers, and facilitate the transaction on behalf of the seller.

In contrast, a buyer’s agreement, sometimes referred to as a buyer's representation agreement, is established to represent the interests of a buyer in the home purchasing process. This agreement generally outlines the responsibilities of the broker to assist the buyer in finding a suitable property and negotiating a purchase.

The correct answer highlights that a listing agreement's primary role is to empower the broker to sell the property, which distinguishes it clearly from a buyer’s agreement that serves the buyer's interest. The clear delineation of roles and authority in these agreements is crucial in real estate transactions to ensure that both buyers and sellers have adequate representation aligned with their goals.