What term describes a real estate broker initiating a series of events that lead to a property sale?

Prepare for the South Dakota Real Estate Test. Ace your exam with flashcards and multiple choice questions. Each question is supported with hints and explanations to help you succeed!

The term "procuring cause" refers to the sequence of events initiated by a real estate broker that directly leads to the successful sale of a property. In the context of real estate, this concept is essential as it establishes the broker's role in facilitating the transaction. When a broker is considered the procuring cause, they have taken actions—such as marketing the property, showing it to potential buyers, or negotiating terms—that ultimately result in a sale.

Understanding procuring cause is vital because it can determine the entitlement to commission. If a broker can clearly demonstrate that their efforts initiated the chain of events resulting in the sale, they can claim their commission regardless of who closes the deal. This concept is key in resolving disputes over commissions, as it highlights the broker's contribution to the transaction process.

The other options, while relevant to real estate transactions, do not describe this specific role. "Closing the deal" pertains to the finalization of the sale, "title transfer" refers to the legal process of transferring ownership from one party to another, and "property management" involves overseeing and maintaining a property, which is distinct from the sales process. Each of these plays a role in real estate but does not define the broker's initiation of the events leading

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