Procuring Cause: Definition, Guidelines And US Guidelines.

procuring cause real estate definition guidelines florida
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When we talk about procuring cause, we get to understand its principles and meaning. However, we will be looking at the topics: procuring cause, real estate, definition, guidelines, and its effect in Florida.

 Now, let us take a good study on each of them.

Procuring Cause

This may seem difficult to explain, which may be why the agent looks uncertain. Procuring cause boils down to which agent earns the commission if a dispute arises. For example, to receive the commission, the agent must show that they followed the rules; and did the necessary work laid out in the multiple listing service guidelines, between brokers when working with a customer; and a second agent also lays some claim to that same commission.

The second agent must also prove that they followed the rules accordingly. The critical point is in settling which agent caused the buyer to write an offer; that results in the sale of the property. On the surface, it would seem simple to decide on, but it is not always that easy.

The procuring cause determines who receives a commission once the sale of a home is complete; the payment goes to the broker whose actions led the client to buy. Issues can arise if a buyer works with more than one broker or agent during the home buying process.

For example, let’s say one agent introduced the buyer to a property, and the buyer eventually purchased and finalized the sale with a second agent. If the agent claims they were the procuring cause of the sale, this could lead to a procuring cause dispute.

Next, we’ll take a look at Procuring Cause Real Estates.

Procuring Cause Real Estate

In the context of a real estate transaction, procuring cause refers to actions that begin or are set in motion; a series of events that lead to the final sale of a property. 

A procuring cause in real estate occurs when a real estate agent or broker produces a buyer for a property, and can sometimes lead to disputes with other agents.

Disputes are often cause by a customers’ lack of understanding, of how things work; coupled with a broker’s lack of attention.

Procuring Cause, real estate, definition, guidelines, flourida.
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Definition Procuring Cause

Procuring, however, can be defined as to get possession, to obtain,  to bring about, or achieve (something) by care and effort. Procuring can also be in definition as the cause as “the uninterrupted series of causal events which results in the successful transaction”.

The legal definition of “procuring cause” is, as legal definitions are wont to be, a little on the arcane side. An abstract definition commonly used by courts defines the standard 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.” Courts apply this abstract procuring cause definition to real estate commissions by saying that procuring cause is “a cause originating a series of events which without break in their continuity result in the accomplishment of the prime objective of the employment of the broker who is procuring a purchaser ready, willing and able to buy real estate on the owner’s terms.”

procuring cause, real estate, definition, guidelines, florida.
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Guidelines In Procurement

First, in the procuring cause guidelines, there is a listing contract between the seller and the listing broker. This contract creates the relationship between these parties, establishes the duties of each and the terms under which the listing broker will be in consideration to have earn a commission, and frequently will authorize the listing broker to cooperate with or compensate (or both) cooperating brokers who may be subagents, buyer agents, or acting in some other capacity.

Second, there is a contract between the listing broker and cooperating brokers. While this may be produced through an offer published through a multiple listing service or through some other method of formalized cooperative effort, it need not be. Unlike the bilateral listing contract (where generally the seller agrees to pay a commission in return for the listing broker’s production of a ready, willing, and able purchaser), the contract between the listing broker and the cooperating broker is unilateral in nature.

Third, there is the purchase contract—sometimes assign to as the purchase and sale agreement. This bilateral contract between the seller and the buyer establishes their respective promises and obligations to each other, which may also impact third parties.

Fourth, there may be a buyer broker agreement in effect between the purchaser and a broker. Similar in many ways to the listing contract, this bilateral contract establishes the duties of the purchaser and the broker as well as the terms and conditions of the broker’s compensation.

Now, that we are done with the procuring cause guidelines, we will now see its effect in Florida.

Procuring Cause Florida

In Florida, during the procuring cause around 2005, there were 258,000 residential real estate sales involving Realtor®-designated agents alone.1 Conventionally, most agents derive their income solely from commissions. So when there is a sale, or an almost sale, and a dispute breaks out over whether a real estate commission is own, it focuses an agent’s attention in a way the salaried among us would not understand.

The legal principle derived from decades of lawsuits filed by focused, betrodden real estate agents is the procuring cause doctrine. It applies in commercial and residential contexts, and even to brokered sales outside of real estates, such as sales of yachts. It is a principle of law that is likely to visit most Florida lawyers during their lifetimes, either as an attorney, counselor, or worse, as a buyer or seller of real estate, or worse yet, as a blood relation of a real estate agent. Understanding the principle fully from the foundation up can be accomplished by reviewing five Florida Supreme Court opinions.

What Is the Purpose of Procurement?

Procurement’s main objective is to ensure that the process adds value and considers the total cost of ownership.

What Does Procuring Mean in Business?

Procuring goods or services for business purposes is known as procurement. Procurement is typically associated with businesses because they frequently need to ask for services or buy goods on a large scale.

Is Procuring Cause the Determining Factor in Ethics Cases?

In order to be eligible for compensation, an applicant must show that they were responsible for obtaining the cause. In and of themselves, agency relationships have no bearing on whether or not a worker is entitled to compensation.

What Does Procuring Mean in Law?

To “carry out” the works, “procure” them, or simply “prepare for the carrying out” of them, are a few examples.

What Is a Procuring Cause Dispute?

When a dispute emerges about who receives the commission from a real estate sale, procuring cause arguments take place. At various stages of the home-buying process, disputes might arise, but they are typically readily avoidable via open communication.


In conclusion, I know u are now able to understand procuring cause on their terms with its guidelines?.

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