When a new year starts, people often take some time to think and observe. I’ve had the pleasure and luck to work with, for, and promote Realtors\u00ae for almost 6 years and counting. Let’s say I’ve seen, heard, or been told it more than once, and it’s usually by a Realtor\u00ae! It’s like the Internet: if you hear something repeatedly, it must be true, right? Haha, maybe not so much. One of the most challenging things to understand is procuring causes. I have heard more examples of procuring cause in real estate, more definitions, and more explanations than Carter had liver pills (as \u201cthey\u201d say), but rarely have I heard the right example, definition, or guidelines.<\/p>
So, let’s demystify the procuring cause, what it means for real estate professionals, and how to prevent disputes before they even begin.<\/p>
In real estate, procuring cause refers to the events initiated by the real estate agent who ultimately helped the buyer close the home. Agents who earned the commission are those who performed the tasks that led you to buy, according to Jim Mellen, a Realtor\u00ae with Re\/Max Peninsula in Williamsburg, VA.<\/p>
In most cases, that would be the agent who first showed you the house. But if you have cut ties with that agent and happen to see the house again with another agent, procuring cause could also mean the one who writes up the offer and helps you negotiate.<\/p>
You can now see how tricky this situation can be.<\/p>
Noelle Nielsen, a real estate agent with Re\/Max Advantage Plus in Eagan, MN, says that real estate agents can be sued if they help a client buy a home while knowing that the client had already looked at the home while under contract with another agent. That contract had not expired or been officially ended before the purchase. However, the first agent would have to show that the second agent knew the buyer was already under contract when they bought the house, which can be troublesome.<\/p>
In addition, agents who disagree with one another about commission percentages can go to their local real estate board for arbitration. If that happens, the buyer may be asked to testify as a witness and provide his version of events.<\/p>
Being honest with your agent will help you prevent this sort of conflict. If you need to move on from the first agent, give them another try. Just be sure to let the second agent know the properties you looked at with the first. <\/p>