AgencyIntermediateArizona Exam

Procuring cause in Arizona real estate refers to:

AThe reason a transaction falls through

BThe agent whose efforts were the direct and proximate cause of a saleCorrect

CThe legal cause of action in a commission dispute

DThe reason a buyer terminates an agency agreement

Why The agent whose efforts were the direct and proximate cause of a sale Is Correct

Answer B: The agent whose efforts were the direct and proximate cause of a sale

Procuring cause refers to the unbroken chain of events set in motion by the broker that results in the consummation of a sale. The procuring cause broker is typically entitled to the commission.

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.

Key Agency Terms in This Question

Agency

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

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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