A listing agreement establishes an agency relationship between which parties?

A listing agreement establishes an agency relationship between the principal broker and the seller. In this context, the seller is the principal who grants authority to the broker to act on their behalf in selling their property. This relationship allows the broker to represent the seller's interests in negotiations and transactions, providing a fiduciary duty that includes support in marketing the property, pricing strategies, and facilitating communication with potential buyers.

By creating this agency relationship, the listing agreement formalizes the expectations, responsibilities, and legal obligations of both parties. The broker is tasked with promoting the property and advising the seller on matters relating to the sale, while the seller agrees to provide the broker with the authority to carry out these tasks within the defined terms of the agreement. This dynamic serves to protect the seller's interests in the transaction while also underlining the professional role of the broker.

The other choices do not accurately represent the nature of the relationship established by a listing agreement. The seller and the buyer are typically in a buyer-seller relationship, not an agency relationship involving a broker. The buyer's agent, while serving the buyer's interests, does not create an agency with the seller through a listing agreement. The agent and the listing service may have a cooperative relationship but do not establish the agency