What is Procuring Cause?

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What is procuring cause? This is a topic that comes up again and again in the real estate industry – it’s a common question I answer for my clients. So, I thought it would be good to address in a video to clear up any questions you might have.

How Does Procuring Cause Work?

Procuring cause is what the local Board of Realtors would deem as the most important thing in determining who gets paid a commission for representing a client.

Here’s a scenario: you are working with a buyer’s agent, but you call the listing agent on a property and set up an appointment with that listing agent directly. You’ve seen the property, and now you want to make an offer.

The listing agent could say that you didn’t disclose that you had an agent, and they felt they were acting as the buyer’s agent by showing you the home, facilitating, answering questions, and helping to negotiate so you are in a position to make an offer.

What many people don’t realize is that it gives the listing agent “procuring cause,” which means they should be able to get the commission. This is how we handle local disputes with the Board of Realtors.

Are You Working with a Buyer’s Agent?

So, I want to get the word out there: if you are working with a buyer’s agent, you’ll want to loop your agent in whenever you are seeing properties. If you aren’t working with a buyer’s agent and you start talking to a listing agent, then it’s a good thing to disclose to them that you are not working with an agent. That way you can clear up any discrepancies that might come up along the way, and make the negotiation go much more smoothly for you.

If you need a buyer’s agent, then call me for assistance. My team provides real estate services here in Temecula. You can call, email, or text for more information about buying or selling a home in our area: (951) 473-0390 or [email protected].