Which of the following is a key benefit of a listing agreement?

A key benefit of a listing agreement is that it establishes the agent’s commission structure. This aspect is crucial because it clarifies how much the agent will earn for their services and sets expectations between the seller and the agent. By outlining the commission structure upfront, it helps prevent any misunderstandings or disputes later in the process. Additionally, having a clear commission agreement encourages the agent to work diligently to sell the property, as their compensation is directly tied to the success of the sale.

While other elements associated with listing agreements are important, they do not capture the essence of the primary benefits related to the business relationship between an agent and a seller as directly as the commission structure. This clarity is fundamental to creating a professional framework for the real estate transaction, enabling both parties to have aligned incentives.