If the listing agent's prospecting results in a sale, the concept ensuring a commission arises from the agent's involvement is called?

If the listing agent's prospecting results in a sale, the concept ensuring a commission arises from the agent's involvement is called?

• A. Procuring Cause
• B. Closing Costs
• C. Earnest Money
• D. Title Insurance

Answer: (A)

Procuring cause is the sequence of actions by a broker that leads directly to the sale, establishing that the broker’s involvement caused the transaction to close. When a listing agent’s prospecting results in a sale, their ongoing efforts—initiating contact, showing the property, negotiating, and keeping the deal together—tie the sale to the agent’s role. If that uninterrupted chain of events produces the buyer’s decision to buy, the broker earns the commission under the listing agreement or applicable real estate laws. Closing costs, earnest money, and title insurance relate to other parts of the transaction and don’t determine who earns the commission.

Procuring cause is the sequence of actions by a broker that leads directly to the sale, establishing that the broker’s involvement caused the transaction to close. When a listing agent’s prospecting results in a sale, their ongoing efforts—initiating contact, showing the property, negotiating, and keeping the deal together—tie the sale to the agent’s role. If that uninterrupted chain of events produces the buyer’s decision to buy, the broker earns the commission under the listing agreement or applicable real estate laws. Closing costs, earnest money, and title insurance relate to other parts of the transaction and don’t determine who earns the commission.