What Is Procuring Cause In Real Estate?

May 15, 2023

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Stock photo showing an agent shaking hands with a couple, representing a real estate transaction or agreement.

Procuring cause in real estate is a complicated subject for even the most experienced home buyers. One wrong move during your home buying process could lead to a dispute between real estate agents over who deserves the commission from your real estate transaction. While these disputes are usually resolved after you close on a home, it’s essential to know what procuring cause is during your home buying process so you know how to avoid disputes and save your real estate agent a significant headache.

What Is Procuring Cause?

In real estate, procuring cause refers to the series of events initiated by the real estate agent who ultimately helped the buyer close on the home. If the buyer used more than one agent, determining procuring cause – and ultimately which real estate agent gets the commission on the sale – can be difficult.

A real estate agent is referred to as the procuring cause of a home purchase if they are the one who caused the buyer to purchase a home. Procuring cause can confuse buyers and real estate agents because it can refer to an array of actions throughout the long home buying process.

Procuring cause disputes are usually between two or more agents, not the agents and their clients. These disputes are arbitrated by state or local real estate boards under guidelines defined by the National Association of REALTORS® (NAR) Code of Ethics. While conflicts between buyers and sellers and their agents may be subject to arbitration, these types of disputes are typically resolved by courts.

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