What is Procuring Cause in Real Estate Transactions?

I've seen many real estate agents struggle with procuring cause issues, and I want to clear up any confusion you might have about this critical concept. Procuring cause determines which agent gets paid in a real estate transaction - and yes, it can get messy sometimes!

Procuring Cause: The continuous chain of actions and events performed by a real estate agent that directly leads to a completed sale or lease transaction. A broker or agent becomes the procuring cause when their specific efforts and activities are primarily responsible for bringing together a willing buyer and seller, resulting in a completed transaction.

Key Elements of Procuring Cause

Think of procuring cause like baking a cake - you need all the right ingredients mixed together in the right order. The recipe starts with making initial contact with buyers or sellers, showing properties, and carrying through with negotiations. Missing steps or having gaps can spoil the whole thing.

The direct connection between an agent's work and the final sale must be clear. I always tell new agents to keep detailed records of everything they do - from the first phone call to the final signature. This paper trail becomes your best friend if questions arise later.

Common Procuring Cause Disputes

Here's where things can get sticky. Picture this scenario: A buyer works with Agent A for weeks, viewing multiple properties. Then they attend an open house with Agent B and decide to make an offer through them instead. Who deserves the commission?

These disputes often pop up when:

• Multiple agents show the same property to a buyer

• Communication breaks down between parties

• Buyers go directly to sellers or listing agents

Protecting Your Rights as an Agent

Documentation is your shield! I keep everything - texts, emails, showing schedules, and notes from every conversation. Written buyer/broker agreements make everything crystal clear from the start. These agreements spell out:

• The scope of your representation

• Commission expectations

• Duration of the agreement

How to Establish Procuring Cause

Want to make sure you're the procuring cause? Focus on these key actions:

• Be the first to show the property

• Stay actively involved throughout the process

• Participate in negotiations

• Document everything

Legal Aspects and Resolution

The National Association of REALTORS® has established guidelines for resolving procuring cause disputes through arbitration. Local real estate boards typically handle these cases by examining:

• The complete timeline of events

• Each agent's level of involvement

• Written documentation

Best Practices for Agents

Clear communication prevents most problems. I make it a point to:

• Keep clients updated regularly

• Maintain professional relationships with other agents

• Document everything in writing

• Follow up consistently

Ready to Work with Professional Agents?

At Bellhaven Real Estate, we understand the importance of clear communication and professional representation. Our agents follow strict documentation practices and maintain the highest ethical standards. Contact us to learn more about buying or selling your next property with confidence.