Minnesota License Law
Under Minnesota real estate law, which statement about the 'procuring cause' doctrine is accurate?
AIt always awards commission to the first agent who showed a property
BIt determines which agent's efforts were the proximate cause of bringing about the sale✓ Correct
CIt is no longer recognized in Minnesota since buyer agency became standard
DIt only applies when no buyer representation agreement exists
Explanation
The procuring cause doctrine determines which real estate agent is entitled to a commission when there is a dispute between brokers. The agent whose continuous, uninterrupted efforts proximately caused the sale is the procuring cause.
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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.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Purchase AgreementA legally binding contract between a buyer and seller that outlines the terms and conditions of a real estate sale.
Math Concepts
State-Specific Concepts
License Law
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