Pennsylvania License Law
What does 'procuring cause' determine in Pennsylvania real estate commission disputes?
AWhich party is responsible for paying the Realty Transfer Tax
BWhich broker or agent is entitled to a commission by being the uninterrupted chain of events that led to the completed sale✓ Correct
CWhich municipality has jurisdiction over a boundary dispute between two properties
DWhich lender has first priority when multiple mortgages exist on a property
Explanation
Procuring cause determines which broker or agent is entitled to a commission when multiple agents claim to have contributed to a sale. In Pennsylvania and under NAR arbitration rules, the procuring cause is the agent whose efforts were the uninterrupted, continuing chain of events that led directly to the sale's completion.
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Key Terms to Know
Transfer Tax
A tax imposed by state or local governments when real property ownership is transferred, typically based on the sale price.
ContingencyA condition in a purchase contract that must be satisfied before the sale can proceed to closing.
Right of First RefusalA contractual right giving a party the opportunity to match any offer received before the owner can accept it from a third party.
Short SaleA sale of real property where the sale proceeds are less than the outstanding mortgage balance, requiring lender approval.
Math Concepts
State-Specific Concepts
Transfer Tax
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