Agency (alternative)
In Maryland, the term 'procuring cause' determines which agent is entitled to a commission when:
ATwo sellers list the same property
BA cooperating agent's role in producing the final buyer is disputed between competing brokers✓ Correct
CA buyer uses two different agents to purchase two properties simultaneously
DThe seller fires the listing agent mid-transaction
Explanation
Procuring cause is the legal concept used to determine which cooperating broker's work was the primary cause of a completed transaction when commission entitlement is disputed.
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Key Terms to Know
Agency
A 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.
Listing AgreementA contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.
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