Agency
The procuring cause doctrine in NJ real estate determines:
AWhich broker has the exclusive right to sell
BWhich broker is entitled to a commission when multiple brokers are involved in a sale✓ Correct
CWhether the buyer's agent owes a fiduciary duty
DHow commissions are split between listing and buyer's brokers
Explanation
Procuring cause determines which broker's efforts were the dominant, uninterrupted cause of the sale, establishing their right to a commission in disputed situations.
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Key Terms to Know
Fiduciary Duty
The highest legal duty an agent owes to a principal — requiring the agent to act in the principal's best interest above all others.
Buyer's AgentA real estate licensee who represents the buyer's interests in a transaction, owing fiduciary duties to the buyer.
Listing AgreementA contract between a property owner and a real estate broker that authorizes the broker to market and sell the property.
Seller's Agent (Listing Agent)A real estate licensee who represents the seller's interests, markets the property, and owes fiduciary duties to the seller.
Math Concepts
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