Agency
What is a procuring cause in real estate commission disputes?
AThe agent who wrote the purchase offer
BThe agent whose efforts were the uninterrupted chain of events leading to the sale✓ Correct
CThe listing agent in any transaction
DThe agent who first showed the property
Explanation
Procuring cause is the legal standard for determining which agent earned the commission. It is the agent whose continuous, uninterrupted efforts were the immediate cause of the sale.
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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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