In real estate, what does the term "procuring cause" refer to?

Study for the Rhode Island Real Estate Sales Test. Access multiple choice questions with detailed explanations. Prepare effectively and ace your exam with confidence!

The term "procuring cause" in real estate specifically refers to the efforts that initiate a successful sale. It is concerned with the chain of events started by the actions of a real estate agent or broker that ultimately lead to a sale. To establish the procuring cause, it is essential to demonstrate that the agent’s actions were responsible for bringing about the agreement to purchase.

This concept is crucial in determining commission disputes and ensuring that the appropriate parties are compensated for their role in the transaction. The focus is on the initial efforts that effectively result in the final agreement of sale, such as initiating contact with the buyer or showing the property, rather than merely the last steps before closing or decisions made by the seller to list the property.

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