26 April I’m procuring cause, right? April 26, 2017By Cindy Sellers Procuring Cause 0 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. Related Posts I know that there have been a lot of laws passed regarding the rights of tenants after a foreclosure. I also understand that I cannot provide legal advice to my clients; however, I would like to have a basic understanding of the rights of a purchaser at a foreclosure sale and the rights of tenants occupying the foreclosed upon property. What is the definition of a variable rate commission to be used when filling out the MRIS (Bright) profile sheet for listing a property? What is the definition of a variable rate commission to be used when filling out the MRIS (Bright) profile sheet for listing a property? How is a listing agreement terminated? There is an important distinction between the rights and duties of the parties under the law of agency and under the law of contract. I have a buyer-client who wants to purchase a property that is “for sale by the owner” (FSBO). I have a buyer-client who wants to purchase a property that is “for sale by the owner” (FSBO). What do I have to do to comply with PHiFA? What is the difference between one party terminating the agreement and both parties executing a contractual release agreement? What is the difference between one party terminating the agreement and both parties executing a contractual release agreement? In the Maryland Homeowners Association Act (HOA) (Title 11B, Section 106 (f)), it states that “the provisions of subsections (a), (b), (d), and (e) of this section do not apply to the sale of a lot in an action to foreclose a mortgage or deed of trust.” I assume this means that if a bank institutes foreclosure proceedings, no HOA disclosure requirement is enforced. But does that also apply to a bank-owned property that the bank is selling as a result of acquiring the property in foreclosure? Is the bank exempt from providing HOA docs to the potential purchaser and that the 5-day right of rescission does not apply? Comments are closed.