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Define Procuring Cause in Real Estate

Procuring Cause: 

Procuring cause is a term used in real estate to describe the person or action that played a key role in making a sale happen. It usually refers to the real estate agent who first found a customer who was ready, willing, and able to buy a property, or the agent who put in the effort to convince the customer to complete the transaction.


Imagine two real estate agents, Agent A and Agent B. Agent A shows a house to a potential buyer, but the buyer doesn't make an offer right away. A few weeks later, Agent B shows the same house to the same buyer and convinces them to make an offer. In this case, Agent B is considered the procuring cause, since they were the one who persuaded the buyer to complete the transaction.

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A few more points to consider about procuring cause:

Commission disputes: Procuring cause is often relevant in disputes over commission payments between real estate agents. Since the agent considered the procuring cause is the one who played the key role in the transaction, they are typically entitled to the commission for the sale.

Continuous effort: In order to be considered the procuring cause, an agent should demonstrate continuous effort in working with the customer and maintaining communication. If the agent stops working with the customer, and another agent steps in and completes the sale, the first agent may not be considered the procuring cause.

Brokerage involvement: Sometimes, procuring cause disputes may arise between brokerages rather than individual agents. If multiple agents from the same brokerage are involved in the sale, the brokerage may be considered the procuring cause and commissions may be divided internally.

Subjective determination: Determining the procuring cause can be subjective and may vary depending on the circumstances of each transaction. Factors such as the agent's involvement, communication with the buyer, and the buyer's decision-making process can all influence the determination of procuring cause.

Local real estate board or association: In cases where procuring cause disputes arise, the local real estate board or association may provide arbitration services to help resolve the dispute and determine which party should receive the commission.

As a real estate agent, it's important to understand the concept of procuring cause and its implications for commission payments. Establishing and maintaining clear communication with your clients, and actively participating in the transaction from start to finish, can help ensure that you receive the commission you've earned and minimize the risk of procuring cause disputes.
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"Wit & Whimsy with the Dumb Ox: Unlocking Knowledge with Rhyme:"

In the world of real estate, there's a term to explore,
It's called procuring cause, and it opens the door.
To find who's responsible, for making a sale,
The agent who brought in the buyer, without fail.

A ready, willing, and able customer they found,
Or the effort they put in, to close the deal, safe and sound.
Like Agent A and Agent B, with a house to sell,
It was Agent B's persuasion, that made the sale go well.

So when you hear procuring cause, you'll know right away,
It's the agent who made the sale happen, hooray!

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