If a broker takes a listing over the phone but does not have it signed by the seller, what is true about the listing?

The correct understanding lies in recognizing that a listing agreement is a contract between the seller and the broker, which typically requires a written document to be legally binding. In most jurisdictions, including Indiana, an oral listing does not fulfill the legal requirements set forth by real estate laws, which generally mandate that a listing agreement must be in writing to be enforceable.

Since the seller did not execute the listing agreement or receive a copy of it, the oral listing cannot be deemed binding. Without the seller's signature, there is no mutual agreement established through the formal processes required to enforce contractual obligations. Therefore, the lack of a signed document means there are no enforceable terms, and thus, the listing agreement remains non-binding. It is crucial for both real estate professionals and sellers to formalize their agreements in writing to ensure all parties have clarity and legal standing in their transactions.