Procuring Cause - Abandonment & Estrangement. Today, I participated in a webinar regarding the topic, Procuring Cause. It's an interesting topic and one that certainly most of us will encounter at one time or another throughout our real estate career.
"Procuring Cause", as defined by the National Association of Realtors, is "the uninterrupted series of causal events that leads to a successful transaction." In plain English, it's the method to determine who rightfully deserves a real estate commission for bringing about a sale.
Two primary reasons for arguing Procuring Cause is Abandonment and Estrangement. In real estate terms, they are defined as follows:
Abandonment: Characterized by some lack of contact by the agent with the buyer for some period of time.
- Estrangement: The conduct or lack thereof of the Agent which causes a Buyer to terminate the relationship.
Here are three essential steps to avoiding a Procuring Cause dispute:
- Educate Your Buyer! Discuss how you get paid. Make sure you encourage them to tell other Agents that they are working with you when they decide to visit Open Houses and New Subdivisions.
- Use Written Buyer Representation Agreements. Using a Buyer Representation Agreements will not guarantee a dispute regarding Procuring Cause, but it will certainly help to build your case.
- Provide consistent and substantive service. Be responsive to your Buyer's calls and emails. If you don't, someone else will.
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