What is a procuring cause?
The procuring cause refers to the actions of a real estate agent or broker whose efforts conclusively result in a property’s sale. The broker or agent is thus compensated with commission from the sale.
What is the condition required for an agent to be the procuring cause?
Procuring Cause Definition. A real estate broker is referred to as the procuring cause of a sale if their outreach and actions resulted in the sale or lease of a property. … If the agent claims they were the procuring cause of the sale, this could lead to a procuring cause dispute.
What is a procuring cause protection period?
To protect brokers in this instance, most listing agreements have what is known as a “broker protection clause,” also known as an “extension clause” or “tail provision.” The broker protection clause provides that if the owner contracts to sell the property with a buyer who was procured by the broker within a specified …
What is procuring cause in Florida real estate?
The procuring cause doctrine, under Florida law, provides that a real estate broker is entitled to a commission when he/she produces a purchaser that is “ready, able and willing to perform upon the terms fixed.” Procuring cause applies in commercial and residential real estate contexts, and even to brokered sales …
How do I stop procuring cause?
How Do I Avoid A Procuring Cause Dispute?
- Be Honest About Working With Other Agents. It’s important to let your agent know if you’re working with another agent. …
- Sign A Buyer-Broker Agreement. A buyer-broker agreement solidifies a working relationship between a buyer and an agent or broker. …
- Follow Open House Protocol.
How do I get out of procuring cause?
How to Avoid Procuring Cause Disputes
- Make It Clear If You’re Working With Another Agent.
- Sign a Buyer-Broker Agreement.
- Sign an Agency Disclosure.
- Let Your Agent Show You Properties.
- Don’t Call Listing Agents.
- Follow Open House Protocol.
What is the threshold rule in real estate?
The threshold rule- the REALTOR that takes the buyer into the home has procuring cause; there is no threshold rule. The buyer agency agreement- The REALTOR who has a buyer’s agency agreement has procuring cause; procuring cause is property-specific not agent-specific.
Which agent obtains the offer?
The seller and any broker(s)/agent(s) involved are to participate in the disclosures. If more than one broker/agent is involved, the broker/agent obtaining the offer is to deliver the disclosures to the prospective buyer unless the seller instructs otherwise.
What is a protection period in real estate?
A safety protection clause in a listing agreement entitles the real estate broker or agent to a commission after the listing expires or is canceled. … The broker must send notice to the seller with each buyer’s name within a certain number of days after the house is off the market in order for the clause to apply.
What is the secret to a fast sale of a property?
The secret to a fast sale is: a seller might have to lower the price of the property.