What authority does the listing agreement give to the broker?

The listing agreement grants the broker specific powers to represent the seller's interests in the sale of a property. One of the crucial authorities conveyed through this agreement is the ability to advertise the property and accept earnest money from potential buyers. This authority is vital because advertising helps attract potential buyers, while accepting earnest money is a common practice that shows the buyer's commitment to the purchase, often used to demonstrate seriousness in negotiations.

In contrast, while negotiating terms with potential buyers is also a critical function of a broker, this is generally included within the broader scope of duties rather than explicitly outlined as an authority granted by the listing agreement. The authority to set the selling price or to take ownership of the property typically remains with the seller. The broker acts as an agent and intermediary, facilitating the transaction while adhering closely to the seller's directives.