Procuring Cause | Propertylogy
Home   >   Academic   >   Procuring Cause

Procuring Cause

By on December 8, 2018

If a real estate agent is the procuring cause for a transaction to take place, then his efforts were the basis for negotiations which let to the deal taking place, and is entitled to a commission.

It is sometimes also known as the contributing case or predominant efficient cause.

You need to know: What lenders hope you never learn about mortgages

Under this rule even the indirect actions of a broker which ultimately led to a sale can be deemed as procuring cause.

For example, if an agent sent a prospective buyer to an open house without being there himself, and a sales transaction was made between the seller and buyer, the agent can still be entitled to commission fees.

A common way used by agents to ensure procuring cause is with the infamous exclusive sale contract. This contract arrangement ensures that a selling agent is compensated should a house be sold within a specified period of time.

While this ensures that the interest of the agent is secured, there is a lot of debate going on about whether this practice secures the interest of a home seller at all.



You May Also Like...

hair1 eye1 abs1
Latest Singapore home loan rates
Hidden items that bring up mortgage costs
Hiring a competent agent
How to burn more calories in the office

Send this to a friend