What is procuring in real estate?

A procuring cause in real estate transactions refers to the real estate agent or broker whose actions resulted in the sale. As a result of their actions, that real estate professional is compensated with a commission from the property sale.

What is the purpose of procuring cause?

The procuring cause refers to the actions of a real estate agent or broker whose efforts conclusively result in a property’s sale. The broker or agent is thus compensated with commission from the sale.

What is the difference between a broker and a Realtor?

Brokers are real estate agents who have completed additional training and licensing requirements. A Realtor is a licensed real estate agent or broker (or other real estate professional) who is a member of the National Association of Realtors (NAR).

What is the difference between a transaction broker and a buyer’s agent?

In real estate, transaction brokers are neutral mediators between buyers and sellers while a buyer’s agent represents only the buyer’s interest. A transaction broker is also licensed to run his/her own brokerage business and can work independently while a buyer’s agent must work with a real estate broker.

How do I get out of procuring cause?

How to Avoid Procuring Cause Disputes

Make It Clear If You’re Working With Another Agent.
Sign a Buyer-Broker Agreement.
Sign an Agency Disclosure.
Let Your Agent Show You Properties.
Don’t Call Listing Agents.
Follow Open House Protocol.

What does procuring cause mean in real estate?

Procuring cause means that the agent who “performed the tasks that led you to buy would be the agent who ‘earned’ the commission,” says Jim Mellen, a Realtor® with Re/Max Peninsula in Williamsburg, VA. In most cases, that would be the agent who first showed you the house.

Can a broker earn a commission for procuring cause?

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.

When do you have a procuring cause dispute?

A procuring cause dispute can arise when the buyer or seller has worked with multiple real estate agents to buy or sell a home, and more than one agent feels that they are the procuring cause of the sale. One way real estate agents try to avoid procuring cause disputes is by asking clients to sign a buyer’s agency agreement or a listing agreement.

Can a real estate agent be sued for procuring cause?

Real estate agents “can be sued if they help a client purchase a home knowing the client already looked at the home while under contract with another agent, and that original contract had not expired or been terminated before the time of the purchase,” notes Noelle Nielsen, real estate professional with Re/Max Advantage Plus in Eagan, MN.

What is procuring in real estate? A procuring cause in real estate transactions refers to the real estate agent or broker whose actions resulted in the sale. As a result of their actions, that real estate professional is compensated with a commission from the property sale. What is the purpose of procuring cause? The procuring…