Stop Poaching My Buyers - A Series on the NAR Code of Ethics (Part Three)

Let’s take some time to discuss procuring cause and its relation to the NAR Code of Ethics. Alan May helped me understand the distinction in a thought provoking post,It ain't always as cut & dry as you might think.

In it, he discusses a case where an agent breaks Illinois Disclosure Law and when he disclosed dual agency, the buyer does not want to use his services and engages another buyer agent. In the end, the listing agent who broke the law and violated the NAR Code of Ethics prevailed in the Procuring Cause Arbitration Hearing and received the commission. He notes that Procuring Cause and ethical violations are two separate issues.

I, also, have a friend who lost a procuring cause case, even though the other agent broke the law and violated the Code of Ethics. So when I discuss Code of Ethics violations, it is a separate matter from Procuring Cause. This was a helpful distinction as I considered some challenging comments addressed towards me. The light went on. It is possible to receive compensation without being ethical and it is possible to be the ethical agent and not receive compensation. This series will seek to discuss ethical behavior, not who receives the compensation.

Other posts in this series:

Stop Poaching My Buyers - A Series on the NAR Code of Ethics (Part One)

Stop Poaching my Buyers - A Series on the NAR Code of Ethics (Part Two)