How the Procuring Cause Works in Real Estate

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Works in Real Estate

Before collecting payment as a real estate agent, you will put in many hours working with your clients. It covers everything from searching and showcasing the property to promoting it, as well as any negotiations, phone conversations, and travel time.

After you’ve put in all of this effort and your client buys or sells a property, you’re entitled to a portion of the sale. That’s where Procuring Cause plays its part. But what exactly is the procuring cause, and how does it work in Real Estate? We will break it down for you in this article.

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What Is Procuring Cause?

The interaction between a buyer or seller and a real estate agent that leads to the purchase or sale of a property and earns the real estate agent a commission is known as the procuring cause of a real estate deal.

Simply put, procuring cause is your entitlement to a commission on the sale of a property. When a buyer or seller works with many real estate agents to acquire or sell property, and each agent believes they are the procuring cause of the sale, a procuring cause dispute might occur because they both completed the job. Still, only one of them will get paid.

Procuring Cause Disputes

Customers’ lack of awareness of how things work, along with a realtor’s lack of attention, frequently leads to disputes. Asking clients to sign a buyer’s agency agreement or a listing agreement is one method real estate agents use to avoid procuring cause disputes.

These contracts spell out the connection between the agent and the customer and who should receive a commission at the time of the deal. The facts behind a procuring cause dispute are frequently complicated, with different factors influencing who piqued a buyer’s interest. It’s a good idea to hire an attorney early on in the buying or selling process so that you completely grasp your rights and responsibilities under a purchase and sale agreement.

Avoiding Procuring Disputes

While procuring cause conflicts is not always avoidable, there are some steps a real estate broker can do to reduce the chance of a conflict. Here are a few tips for working with your buyer smoothly and transparently and, ultimately, avoiding any disputes:

  • The best method to protect yourself is to obtain all of the buyer’s information upfront. Verify that they are not working with any other real estate agent and stress the value of working with only one. For example, you’d want to know whether your client was shown a property by another agent and signed a buyer-broker agreement with that agent. And if they signed an exclusive deal with the other agent and you were aware of it but continued to work with the buyer, this may lead to a conflict.
  • There should be no disputes about procuring cause if you and the buyer keep your ends of the bargain.
  • If your buyer has signed a buyer’s agent agreement with you and then violates the contract by hiring another agent before canceling the deal, you may be entitled to pursue legal action against the buyer.
  • Once the buyer has committed to you, it is critical to maintaining a professional relationship with the agent.

Conclusion

Buying property is one of the most significant investments you will ever make, and your agent is there to assist you in making it a smooth and successful process. You don’t want this vital moment to finish on the wrong note.

Now that you’ve learned the foundations and fundamentals of Procuring Cause follow the guidelines outlined above to ensure that your agent is compensated for their efforts and that no one has to face legal wrangling.

Because the procedure for a procuring cause dispute varies, it is strongly recommended that you seek legal counsel to ensure you follow the correct approach. Please get in touch with Sigma Properties if you require assistance with any real estate concerns.

Author Bio

Muhammad Junaid is a senior Analyst and Search Engine Expert. Extensive experience being a lead writer in Sigma Properties |Capital Smart City Islamabad. Work for years with local and international enterprises. Also, represent well-known brands in the UAE.