"Procuring cause" may be defined as a series of events, unbroken in their continuity, that result in the desired objective (i.e., generally, the sale of property).
Black's Law Dictionary, Fifth Edition, defines procuring case as: The proximate cause; the cause originating a series of events which, without break in their continuity, result in the accomplishment of the prime object. The inducing cause; the direct or proximate cause. Substantially synonymous with efficient cause.
From time to time, we have to review and discuss procuring cause. Interesting that people have a different interpretation or conclusion on who is the real procuring cause. So what's YOUR interpretation/conclusion?
Scenario 1:
Agent A tells Clients A to drive by a particular house because she thinks her clients will like it. She gives them basic information. Clients A drive by the house just as Agent B finished showing the house to her Clients B. Agent B asks Clients A if they want to see the house, and lets them in, while agent makes their Clients B wait outside.
Later, Clients A writes offer with Agent A. Agent B calls Agent A and demands a referral fee since she showed the property to Client A.
Scenario 2:
Buyers like going to open houses and do so without their Buyers Agent. They see House One. They ask Listing Agent to show it to them a second time.
But Buyers also have Buyer Agent showing them various properties besides House One. Buyers have asked Buyer Agent to write offer for them on other properties. Later, they ask Buyer Agent to write offer on House One. Listing agent, upon seeing name of Buyers, protest and say that since they showed the house, and if the offer is accepted, that is the procuring cause.
7 KEY QUESTIONS TO DETERMINE PROCURING CAUSE
Source:National Association of REALTORS)
The majority of commission disputes hinge on disagreements over whether individuals contributed significantly to making a sale. In determining if a cooperating salesperson or broker is entitled to a commission, consider the following:
1. When and how was the original introduction [of the buyer to the property] made?
2. Did the original introduction start an uninterrupted series of events leading to the sale?
3. Did the broker/salesperson who made the original introduction maintain contact with the buyers?
4. Did the broker/salesperson engage in conduct that prompted the buyer to look elsewhere for assistance?
5. If more than one cooperating broker was involved, was the second broker/salesperson aware of the prior introduction of the buyer to the property?
6. Was the introduction of a second broker an intrusion into the transaction or the result of estrangement or abandonment by the original broker?
7. Did the cooperating broker initiate a separate series of events, not dependent on the original broker's/salesperson's efforts, that led to the successful transaction?
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