Procuring Cause or not?

Real Estate Agent with Realty Executives

What is procuring cause?

Procuring cause is the chain of events that ultimately caused the buyer to purchase or the agent or broker who, by their actions in producing a buyer, brought about the sale of a property.

   So goes the story.

An agent (Listing Agent A) had an agreement with said builder, where because the agent brouth them the land, the agent (Listing Agent A) was the listing agent on listings that resulted after the subdivision of said land.

Said Builder, only listed the first listing with (Listing Agent A). After several showings of the listing, the feedback was the same, the floor plan made it difficult to place furniture.  The builder had begun building a second home, whereas the floor plan was adjusted, to make a more desirable layout.

A buyer's agent (Buyer Agent A) showing the first and only "listed" property, had a buyer interested in it, however, ended up writing an offer on another property. (Listing Agent A) follows up with (Buyer Agent A) on several occasions for feedback, to inform them of possible price reduction, then to give (Buyer Agent A) the reduced price and encourage (Buyer Agent A) to bring the buyer or other buyers back. Shortly after reducing the price (Listing Agent A) receives an offer on the first and only listed property. A day or two later (Buyer Agent A) calls and says they have a buyer, but noticed the only listed property is now under contract.  (Buyer Agent A) also asks if the home next door was listed yet, and if it was available, if so, what's the price? (Listing Agent A) contacts Builder to inquire about listing the 2nd property. (Listing Agent A) asks if he was ready to sell house currently under construction and if so, what price? Days go by before the Builder responds to (Listing Agent A) questions. The Builder replies "I will be listing the 2nd home with my , if you bring me a buyer before I list it, I'll compensate you for the sale."

The question is:

Does (Listing Agent A) have procuring cause if (Buyer Agent A) writes a contract with Builder's new listing agent since (Listing Agent A) has been working to get (Buyer Agent A) back to the site?  

What's your take?

Posted by

Chris Faircloth, Realtor

Realty Executives

757-288-0983 Cell

Comments (2)

Brian Rugg
Rugg Realty LLC Sun City Texas 512-818-6700 - Georgetown, TX
Sun City TX Real Estate - Georgetown, TX Real Est



Hello Chris:


I read and re-read your post several times to thry and follow the question.  I'm not sure I ever got it right.  That said, I don't see how the lisitng agent (A or otherwise) has any claim on the second house.

Aug 11, 2010 01:13 AM
Dennis Duvernay Broker/Owner
Hillview Realty - Northbridge, MA

I agree with post #1.....I don't think keeping in touch with Buyer agent A would be procuring cause for the second lot as it was not shown by Listing agent A or even listed by Agent A....if anything I would make sure I list the home before I look for procuring cause.....and this is all if I read your post right....

Aug 11, 2010 01:19 AM