Agency
Which of the following BEST describes 'procuring cause' in determining commission disputes in Florida?
AThe agent who writes the purchase contract is the procuring cause
BThe uninterrupted series of causal events that ultimately results in the sale of the property✓ Correct
CThe agent who first shows the property to the buyer
DThe listing agent, regardless of who finds the buyer
Explanation
Procuring cause is the uninterrupted chain of events initiated by the agent's actions that ultimately leads to the completed sale. This standard is used by arbitration panels (such as those of NAR) to resolve commission disputes between brokers.
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Key Terms to Know
Listing Agreement
A contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.
AgencyA legal relationship in which a licensee (agent) acts on behalf of a principal (buyer or seller) in a real estate transaction.
Dual AgencyA situation where a single real estate agent or brokerage represents both the buyer and the seller in the same transaction.
Fiduciary DutyThe highest legal duty an agent owes to a principal — requiring the agent to act in the principal's best interest above all others.
Math Concepts
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