| You are here: | About>Home & Garden>Home Buying / Selling> Real Estate Agents> What is Procuring Cause? - Procuring Cause and Commission Disputes |
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Elizabeth Weintraub's First-time Home Buyer's AdviceBuyers Broker AgreementsHow to Interview Your AgentWho Pays the Agent? Elizabeth Weintraub's Articles About Real Estate AgentsHow to Find a Real Estate Agent10 Reasons to Hire a Real Estate AgentDifferences Between Realtors & Real Estate Agents Elizabeth Weintraub's Real Estate Advice You Won't Find Anywhere Else on the WebSingle Women Buy Homes, TooHome Shopping Tips for First Time Home BuyersLooking Twice at Overpriced Homes What is Procuring Cause?Procuring Cause and Commission DisputesYou don't have to hop from agent to agent to end up causing commission disputes among real estate agents. In case you're thinking, "What difference does it make since the seller pays the commission," be aware that today's buyers typically sign buyer's broker agreements, making the buyer responsible for payment of the commission, even though that fee is paid from the seller's proceeds. Commission disputes boil down to what is referred to in the industry as "procuring cause." The agent who ultimately caused the buyer to purchase the home and earned the commission is the procuring cause agent. That procuring cause agent might not be the agent who obtained the offer from the buyer, presented the offer and successfully negotiated the seller's acceptance of that offer. Every state Realtor association has its own guidelines that establish procuring cause, none of which are fast and hard rules. Some facts carry more weight than other facts. A buyer could sign an exclusive buyer's broker agreement with one agent but the second agent who closes the transaction, depending on circumstances, could end up earning the commission. Procuring cause is complicated and the outcome is not always predictable. Realize that when you speak to an agent at an open house, call an agent for information from a newspaper ad or ask an agent to show you a home, you might be opening a can of worms for yourself if you don't intend to buy a home through any of these agents. Your best bet to avoid procuring cause disputes is to be upfront with each real estate agent you interview and hire the best qualified to help you find a home. But the road that takes you there can be long and dusty. Along the way, you are likely to encounter other agents. But once you find an agent, use these tips to help your agent establish procuring cause:
Elizabeth Weintraub's First-time Home Buyer's AdviceBuyers Broker AgreementsHow to Interview Your AgentWho Pays the Agent? Elizabeth Weintraub's Articles About Real Estate AgentsHow to Find a Real Estate Agent10 Reasons to Hire a Real Estate AgentDifferences Between Realtors & Real Estate Agents Elizabeth Weintraub's Real Estate Advice You Won't Find Anywhere Else on the WebSingle Women Buy Homes, TooHome Shopping Tips for First Time Home BuyersLooking Twice at Overpriced Homes |
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