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Procuring Cause and Broker Compensation, A Home Seller and Buyer's Nightmare

  • Broadcast in Real Estate
Jesus Gonzalez

Jesus Gonzalez


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Procuring cause as used in real estate refers to the actions that started or set in motion a series of events that caused the final sale of a property. In other words, it’s the process to determine who gets the commission upon a successful sale. It’s been my experience that procuring cause is a term that few buyers and sellers ever heard of let alone understand. None the less, the procuring cause is extremely important because essentially, it determines who is responsible for brokering the deal. If the procuring cause is in question, then a agent could claim a commission from either the seller, buyer or in some cases, both. All in all, not understanding procuring cause can not only put the deal at risk but, it could end up costing everyone more than they had planned on.