Frequently Asked Questions

Legal Hotline FAQ

a blog of the most frequently asked questions to the MAR legal hotline.


Cindy Sellers
Cindy Sellers
Cindy Sellers's Blog

I’m procuring cause, right?

Whether a broker claiming to be the procuring cause of the transaction is in fact the procuring cause depends on many factors, including:1) the nature and status of the transaction; 2) the nature, status, and terms; 3) the roles and relationships of the parties; 4) the initial contact with the purchaser; 5) the conduct of the broker or the agent; 6) continuity and breaks in the continuity; 7) the conduct of the buyer; 8) the conduct of the seller; and 9) other information.
It is important to understand that the existence of any particular factor in a fact situation does not necessarily mean that procuring cause does or does not exist. No automatic conclusions should be drawn from the presence or absence of any one factor. Note, procuring cause is defined as the interplay of factors which together demonstrate that the unbroken efforts of a specific broker were responsible for the buyer making the decision to consummate the sale on terms which the seller found acceptable. There is no standard “procuring cause rule.” Each claim of procuring cause must be evaluated on a case-by-case basis and on its own merits.
Keep in mind, only a properly convened panel of arbitrators can determine whether or not a REALTOR® claiming to be the procuring cause of a sale is entitled to compensation. To review NAR’s guidance concerning procuring cause, click here.
 


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