What is procuring cause in a real estate transaction?

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 …

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How do I stop procuring cause?

How Do I Avoid A Procuring Cause Dispute?

  1. Be Honest About Working With Other Agents. It’s important to let your agent know if you’re working with another agent. …
  2. Sign A Buyer-Broker Agreement. A buyer-broker agreement solidifies a working relationship between a buyer and an agent or broker. …
  3. Follow Open House Protocol.

How do I get out of procuring cause?

How to Avoid Procuring Cause Disputes

  1. Make It Clear If You’re Working With Another Agent.
  2. Sign a Buyer-Broker Agreement.
  3. Sign an Agency Disclosure.
  4. Let Your Agent Show You Properties.
  5. Don’t Call Listing Agents.
  6. 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.

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