AgencyIntermediateCalifornia Exam

The 'procuring cause' doctrine in real estate refers to:

AThe agent who first lists the property, consistent with typical listing agreement terms
BThe unbroken chain of events caused by an agent that results in the saleCorrect
CThe legal cause of action for breach of fiduciary duty, per standard fiduciary practice in the industry
DThe process by which the DRE investigates complaints, under standard California agency practice

Why The unbroken chain of events caused by an agent that results in the sale Is Correct

Answer B: The unbroken chain of events caused by an agent that results in the sale

Procuring cause is the legal standard used to determine which broker is entitled to a commission when there is a dispute. The broker who is the 'procuring cause' is the one whose efforts were the proximate cause of the completed sale.

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

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