What must a listing agreement include regarding the relationship of the listing broker?

The correct answer highlights the importance of clearly defining the broker's authority in a listing agreement, particularly in relation to representing multiple parties. A well-drafted listing agreement must articulate the scope of the broker's representation, which may include the capacity to act on behalf of multiple clients or parties in a transaction. This is crucial for maintaining transparency and managing potential conflicts of interest.

In situations where a broker may represent both the seller and the buyer, it's essential to understand how this dual representation works, including the broker's fiduciary duties and any necessary disclosures. By specifying this authority within the listing agreement, the parties involved can better comprehend the broker's role and ensure that all necessary consent and disclosures are established to comply with industry regulations and best practices.

In contrast, while specifying the commission structure and outlining the risks associated with property marketing are important aspects of a listing agreement, they do not directly address the relationship of the listing broker. Similarly, legal obligations of the property owner are relevant, but they fall outside the parameters of the broker's relationship within the listing agreement itself.