Tennessee Real Estate License Exam Practice Question
What kind of contract describes the property, states the amount of commission to be paid, states an expiration date, and is signed by the seller?
Correct Answer: C
Rationale: A listing contract specifically outlines the property details, commission amount, expiration date, and is signed by the seller, establishing a formal agreement with a real estate agent.
Option A, an offer to purchase, is initiated by a buyer and does not include commission details or a seller's signature. Option B, a contract to sell, typically follows a listing contract and is focused on the sale terms rather than the listing specifics. Option D, an option agreement, gives a buyer the right to purchase property at a later date but does not involve commission or seller signatures in the same manner as a listing contract.
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