AgencyIntermediateDelaware Exam

The procuring cause of a sale determines who is entitled to:

AFile the deed

BReceive the commission when there is a dispute between agentsCorrect

CConduct the closing

DList the property on the MLS

Why Receive the commission when there is a dispute between agents Is Correct

Answer B: Receive the commission when there is a dispute between agents

Procuring cause is the uninterrupted chain of events that led to the consummated sale. It is the standard used to determine which broker earned the commission when there is a dispute.

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

Deed

A written legal instrument used to transfer ownership of real property from one party (grantor) to another (grantee).

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Federal law prohibiting discrimination in the sale, rental, or financing of housing based on race, color, national origin, religion, sex, disability, and familial status.

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A mortgage with an interest rate that changes periodically based on a financial index, usually after an initial fixed-rate period.

Discount Points

Prepaid interest paid to a lender at closing to reduce the mortgage interest rate, with each point equal to 1% of the loan amount.

Private Mortgage Insurance (PMI)

Insurance required by lenders on conventional loans with less than 20% down payment, protecting the lender — not the borrower — against default.