Agency
In Ohio, the 'procuring cause' doctrine helps determine which broker is entitled to a commission when:
ATwo brokers both hold active listings on the same property
BA sale occurs and there is a dispute about which broker's efforts were the proximate cause of the transaction✓ Correct
CA buyer switches agents between showings and purchase
DA seller fires the first broker and lists with a second broker
Explanation
Procuring cause identifies the broker whose efforts were the primary, unbroken chain of events leading to the consummation of the sale. It determines who is entitled to the commission when multiple brokers are involved.
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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.
Math Concepts
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