who is procuring cause?

Agent a worked with buyers for years  showed  this property to them twice.  Did not write buyer agency as there was loyalty and trust built up.    then they had a friend (realtor) write contract.  I am sure buyer agency signed at this time.  Who is due commission
  • January 31 2014 - US
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Answers (4)

This happens to the best of us.  It's hard situation all around.  Learn from the experience and engage discussion with buyers about broker agency and how we work and represent them.  Good luck.  Sorry to hear
  • February 04 2014
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An adjudicator decides who is procuring cause, Leslie. Regardless of what any of us say or write, we have no standing.

  • February 01 2014
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Similar thing happened to me a few weeks back. An agent showed one of my listings and made an extremely low offer. Consequently, the offer was countered at almost asking price and the agent never responded. Days later, the agent's client coincidentally bumped into my seller in a public place and out-right called him out, "why dont you want to sell your home to me?!" my client was shocked to hear a stranger accosting him/her. Eventually, the seller negotiated the offer with the buyer and sent them our way to fill out the contract. When the other agent caught wind of this, he/she demanded to be compensated the commission. We called the legal hotline in our state and they mentioned procuring cause. The buyer felt that their agent did not act in their best interest and felt it necessary to proactively negotiate the deal themselves. In the end, we contracted the listing ourselves and the agent was not compensated a dime.
  • February 01 2014
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Every state Realtor association has its own guidelines that establish procuring cause. If you are in California call C.A.R. Legal hotline 213-739-8350. These guidelines, none of which are fast and hard rules. Some facts carry more weight than other facts. A buyer could sign an exclusive buyer's broker agreement with one agent but the second agent who closes the transaction, depending on circumstances, could end up earning the commission. Procuring cause is complicated and the outcome is not always predictable.

Years ago this happened to me (just once) and this is what I learned… If you never got this person to sign a Buyer's Broker's Agreement, which also covered the specific time period, than 9 times out of 10 you are not entitled to anything.

The agent that wrote the offer had asked this person if you're working with another agent and Buyer said "Yes. another agent has shown us property but she is not always available  so on and so on.  This was seen or considered as me sorta getting fired or dropping the ball also I did not have that agreement. 

  • January 31 2014
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