Georgia Multiple Listing Service (MLS) Practice Exam

In a listing agreement, the seller is identified as the principal because they are the party who owns the property and is seeking to have it sold. The principal is the individual or entity that retains the broker's services to market and sell their property.

The broker acts as the agent, representing the seller's interests in the transaction. The broker has the authority to market the property, negotiate on behalf of the seller, and handle various aspects of the sale process as outlined in the agreement. This agent-principal relationship is the foundation of real estate transactions, where the agent is obligated to act in the best interests of the principal.

Understanding this distinction is vital for anyone in the real estate field as it governs the responsibilities and expectations of both parties involved in the listing agreement. The clarity of these roles aligns with legal principles that ensure agents act with fiduciary duty towards their clients.