AgencyIntermediateAlabama Exam

The term 'procuring cause' determines which broker earned the commission by identifying:

AThe first broker to show the property

BThe broker whose efforts were the uninterrupted chain of events leading to a completed transactionCorrect

CThe broker who held the listing the longest

DThe broker with the highest production volume, though outcomes can differ depending on circumstances

Why The broker whose efforts were the uninterrupted chain of events leading to a completed transaction Is Correct

Answer B: The broker whose efforts were the uninterrupted chain of events leading to a completed transaction

The procuring cause rule credits the commission to the broker whose continuous, uninterrupted efforts were the primary cause that directly led to the consummated transaction.

Exam Tip: Agency

Agency questions are among the most tested on the exam. Focus on the difference between client and customer, and memorize the fiduciary duties (OLD CAR). Watch for questions that try to blur the line between a general agent and a special agent.

People Also Study

Key Terms to Know

Agency

A legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.

Dual Agency

A situation where a single real estate agent or brokerage represents both the buyer and the seller in the same transaction.

Fiduciary Duty

The highest legal duty an agent owes to a principal — requiring the agent to act in the principal's best interest above all others.

Listing Agreement

A contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.

Math Concepts

Commission Calculation

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Agency Law Guide

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