Procuring Cause
Definition and meaning of Procuring Cause in real estate.
Procuring cause is a legal concept used in real estate to determine which broker or agent is entitled to the sales commission. It is defined as the agent whose uninterrupted actions started a chain of events that directly resulted in the successful sale of the property.
In more detail
Commission disputes often arise when a buyer works with multiple agents during their home search. Simply showing a house first does not automatically make an agent the procuring cause; the agent must maintain active, continuous contact and guide the client through the negotiation and contract phases.
If an agent introduces a buyer to a home but then stops communicating, and the buyer later purchases the home through a second agent, a dispute may occur. Real estate boards use local arbitration to resolve these issues based on the specific facts of the transaction.
Key facts
| Category | Buying & Selling |
|---|---|
| Primary purpose | Determining which real estate agent receives the commission |
| Resolution method | Local real estate board arbitration or legal action |
| Watch out for | Working with multiple agents without signing representation agreements |
An agent shows a buyer three homes and writes up an offer that gets accepted. Even though another agent had emailed the buyer a listing link weeks earlier, the first agent is the procuring cause because they actively negotiated and closed the transaction.
Frequently asked questions
Does the agent who first shows a home always get the commission?
No, showing the property is only one factor; the agent must be the one who initiates the continuous chain of events leading to the closing.
How can buyers prevent procuring cause disputes?
Buyers can avoid confusion by signing an exclusive buyer representation agreement with a single agent and disclosing their agent relationship at open houses.