How does a "listing agreement" differ from a "buyer’s agency agreement"?

The correct answer highlights the primary distinction between a listing agreement and a buyer's agency agreement, focusing on their fundamental purposes. A listing agreement is indeed a contract in which a seller engages a broker to facilitate the sale of their property. This establishes a relationship where the broker has a fiduciary duty to promote the seller's best interests, market the property, and negotiate on the seller's behalf.

Conversely, a buyer's agency agreement is established when a broker represents a buyer in the property acquisition process. This arrangement creates a fiduciary relationship where the broker helps the buyer identify properties, conducts market analyses, and negotiates terms that favor the buyer.

The other options do not accurately reflect the essential nature of these agreements. For instance, the second choice incorrectly suggests that listing agreements are exclusively for rental properties, which is misleading since they are primarily focused on sales. The third option makes an assumption about the duration of agreements, which can vary significantly depending on specific circumstances but doesn't apply universally. Lastly, the fourth choice implies that listing agreements ensure a guaranteed sale, which is not accurate, as no agreement can guarantee a transaction will close. Thus, the first choice aptly captures the fundamental difference between the two types of agreements in real estate practice.