Agency
What is the 'procuring cause' doctrine and how does it resolve commission disputes between Pennsylvania brokers?
AThe broker who procures (obtains) the listing is always entitled to the full commission
BThe procuring cause is the broker whose effort and activity were the primary cause of the sale; if disputed, MLS arbitration or court determines which broker's efforts were instrumental in completing the transaction✓ Correct
CPennsylvania requires all commission splits to be determined before the property is listed
DThe procuring cause doctrine only applies to commercial transactions in Pennsylvania
Explanation
Procuring cause is the legal and MLS standard for determining commission entitlement when multiple agents claim involvement in a transaction. The procuring cause broker is the one who initiated an unbroken chain of events leading to the sale — typically the buyer's agent who introduced the buyer to the property and maintained a continuity of involvement through closing. Pennsylvania MLS systems use NAR's procuring cause standards, with disputes resolved through arbitration. The doctrine discourages agents from abandoning clients mid-transaction.
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