May 24, 2012

Procuring Cause

What is Procuring Cause

In simple terms it is a legal term used when it comes to disputing who earns the real estate commission.  We have handled numerous cases which involved Procuring Cause and almost every case was different than the other.

The general theory is that the agent who ultimately caused the buyer to purchase the home and earned the commission is the procuring cause agent.  Also, the procuring cause agent does not necessarily mean that he/she was the agent who obtained the offer from the buyer, presented the offer and successfully negotiated the seller’s acceptance of that offer and it certainly doesn’t mean that the procuring agent was the agent who first showed the property.

The best way to avoid these conflicts is to spell out your relationship with the client in a Business Relationship Agreement and although it may not prevent the dispute, it certainly helps if this matter comes before court or a mediator.

If you have a dispute with your client or with your agent, feel free to give us a call at (215) 942-2100.