Agency
What is the 'procuring cause' doctrine in real estate?
AThe requirement that all brokers must disclose their agency relationship
BThe principle used to determine which broker is entitled to a commission by establishing which broker was the primary cause of completing the transaction✓ Correct
CThe law requiring all listing agreements to specify a commission amount
DThe obligation of a managing broker to procure adequate supervision for all sponsored brokers
Explanation
The procuring cause doctrine determines which broker is entitled to a commission by asking which broker was the primary, uninterrupted cause of the transaction being completed. This becomes relevant when multiple brokers were involved and there is a dispute over commission entitlement.
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