What Is Procuring Cause And Why Is It Important?
Are you a real estate agent, buyer, or seller looking to close deals faster? Have you ever heard of the term “procuring cause?” It’s a critical concept in the real estate industry that can make or break your success. Procuring cause is what determines who gets paid for a transaction and how much they get. In this blog post, we’ll dive into what procuring cause is all about and why it’s so important to understand if you want to succeed in real estate. So buckle up and get ready to learn everything you need to know about procuring cause!
What is procuring cause?
When it comes to real estate, procuring cause is defined as the series of events that leads to the successful transaction of a property. In other words, it’s the chain of events that ultimately results in a buyer and seller entering into a contract.
But why is procuring cause important? Well, for one, it can play a role in commission disputes. If there’s ever a disagreement over who deserves credit (and commission) for bringing a deal together, procuring cause can be used as evidence to support one party’s claim.
Additionally, understanding procuring cause can help you better understand how to market yourself and your listings. After all, if you want to earn the commission, you need to be the one who initiates and completes the series of events that leads to the sale!
What are the benefits of procuring cause?
There are many benefits of procuring cause. Perhaps the most important benefit is that it protects the agent’s commission. In order for an agent to receive a commission, they must be the procuring cause of the transaction. This means that the agent must have been instrumental in bringing the buyer and seller together and getting the deal done.
Another benefit of procuring cause is that it can help avoid disputes between agents who may both be claiming credit for a sale. If there is clear evidence that one agent was the procuring cause, then there should be no dispute over who gets the commission.
Lastly, procuring cause can also provide some protection for buyers and sellers. If an agent is not able to procure a buyer or seller for a property, then they may not be entitled to their commission. This protects buyers and sellers from being taken advantage of by agents who are not able to deliver on their promises.
How can you establish procuring cause?
When it comes to real estate, procuring cause is everything. It’s the one thing that can make or break a deal, and it’s something that every agent should be aware of. So, what exactly is procuring cause?
In short, procuring cause is the series of events and actions that leads to the successful sale of a property. It starts with the first contact between the buyer and seller, and includes everything that happens up until the closing of the deal.
Establishing procuring cause can be tricky, but there are a few things you can do to make sure you have a strong case. First, keep detailed records of all your interactions with the buyer or sellers. This includes emails, phone calls, text messages, and any other communication you have had with them.
Second, if you are working with a team of agents, make sure that everyone is on the same page about who had which interactions with the client. This will help avoid any confusion down the line.
Finally, if you are ever in doubt about whether or not you have procuring cause, always err on the side of caution and consult with an experienced real estate attorney. They will be able to help you navigate these tricky waters and make sure that you are protected.
Are there any exceptions to procuring cause?
Yes, there are exceptions to procuring cause. In some states, if the buyer is already under contract with another agent, the first agent may not be able to claim procuring cause. Additionally, if the property is listed by another broker and the buyer’s agent shows the property to the buyer, the listing broker may have a better claim to procuring cause.
Conclusion
In conclusion, procuring cause is an important concept in the real estate industry. It ensures that agents are properly compensated for their efforts and helps to protect against unethical practices within the industry. By understanding what procuring cause is and why it matters, buyers and sellers can ensure they receive fair representation throughout a transaction. Additionally, real estate professionals need to understand how this concept works so they can work effectively with their clients. Knowing what procuring cause is and how it applies to transactions will help all parties involved progress in a collaborative manner towards successful deals.