When a real estate agent asks a buyer if he or she is working with another real estate agent, it's not out of idle curiosity. For one thing, the Realtor Code of Ethics, to which Realtors subscribe, very clearly states that a Realtor is not permitted to interfere in the relationship between another Realtor and her client.

However, another reason that agents ask this question is because of commission disputes. If a buyer has established a relationship with another agent -- perhaps was shown a home by the listing agent, for example, and then tried to write an offer through a separate agent -- the buyer could be kicking up that dust devil known as procuring cause. It's not a black-and-white situation, either, especially in California.

Here's how buyers can protect themselves from being named in procuring cause cases.

elizabeth weintraub

 
This post has been included in California Information

3 Comments on Procuring Cause Disputes

I had something along these lines except the other agent never asked my customer if she was working with an agent ran out at 7 pm at night to show her a property and wrote the contract on the spot, my customer knew I had prior engagements and couldnt show property that night. Funny thing is I spoke with my buyer asking why she did what she did, well she must have said something ot that agent after that because my broker got a call the next morning by this agents broker saying that I was unethical and trying to alienate the agent from the buyer. Um hello I know your agent didnt even ask that oh so important question and you want to bring me up on charges? I just believe in Karma or at least I tell myself that so I dont go postal on someone one day :)

11/11/2007 05:53 PM by Orlando & Lake Mary Real Estate Agent, First Time Home Buyers & Luxury Market (RE/MAX Central Realty)


I had a procuring cause issue.  The other agent paid me a 25% commission and she was professional in her apologies that it happened.  She is an excellent agent and handled it appropriately (I thought).

 

11/11/2007 10:07 PM by Fran Gatti - Crescent City CA Real Estate (RE/MAX Coastal Redwoods)


Hi Heather: It's a small world in this business, and I have found it's better to let these things roll off your back. What goes around does tend to come around, for some unexplainable reason. It's distressing that not all agents have integrity.

Hi Fran: That's generally how they end up. One agent pays the other a referral fee. But some drag on and on. And some agents adamantly refuse to pay referral fees, even when they knowingly swipe a client. It takes all kinds in this business, and those agents ruin their own reputations.

When agents have a good experience working with another agent, sometimes we forget to say thank you to that person, which is regrettable. However, when an agent has a bad experience, human nature dictates that we yak about it to anybody who will listen until the cows come home. Even though the Code of Ethics prevents us from bad-mouthing, believe me, it's done, if for no other reason than to warn.


11/12/2007 09:42 AM by Elizabeth Weintraub, Sacramento Real Estate Broker (Lyon Real Estate)


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Real Estate Agent: Elizabeth Weintraub, Sacramento Real Estate Broker (Lyon Real Estate)
Elizabeth Weintraub, Sacramento Real Estate Broker
Sacramento, CA
More about me…
Lyon Real Estate

Office Phone: (916) 233-6759
Cell Phone: (916) 233-6759
Email Me
Broker-Associate at Lyon Real Estate, midtown Sacramento. Selling since 1974. Home Buying Columnist at About.com.


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