AgencyIntermediateDelaware Exam

What is the 'procuring cause' doctrine in Delaware real estate?

AThe rule that the listing broker always earns the commission
BThe principle that the broker who is the efficient, proximate cause of a completed sale is entitled to the commissionCorrect
CThe requirement that buyers must use a buyer's agent to purchase MLS-listed property
DThe rule governing when agency duties begin

Why The principle that the broker who is the efficient, proximate cause of a completed sale is entitled to the commission Is Correct

Answer B: The principle that the broker who is the efficient, proximate cause of a completed sale is entitled to the commission

Procuring cause refers to the broker whose efforts were the efficient, proximate cause of the completed sale. Determining procuring cause is relevant in commission disputes between cooperating brokers.

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.

Buyer's Agent

A real estate licensee who represents the buyer's interests in a transaction, owing fiduciary duties to the buyer.

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