If you’ve been in the business long enough, you’ve probably heard the term “procuring cause” thrown around—especially when there’s a commission dispute on the line. But what does it really mean, and how can you protect yourself from losing out on hard-earned income?
Let’s break it down in simple terms.
So… What Exactly Is Procuring Cause?
In real estate, procuring cause refers to the series of events started by an agent that ultimately leads to a successful sale or lease. Basically, it’s the answer to the question: “Who made this deal happen?”
It’s most often brought up when more than one agent is involved with a buyer, and there’s confusion—or conflict—over who deserves the commission.
A Quick Example
Let’s say Agent A shows a home to a buyer on Saturday, and the buyer says, “Thanks, I’ll think about it.” Then, a week later, the same buyer calls up Agent B and makes an offer on that home through them. The house closes, and now both agents believe they deserve the commission.
Who gets paid?
It depends on who was the procuring cause—the one who set the sale in motion and kept it going all the way to the finish line.
What Do They Look At?
When there’s a disagreement, here are a few things brokerages or hearing panels typically consider:
– Who introduced the buyer to the property?
– Was the chain of events unbroken from showing to closing?
– Did the agent maintain involvement throughout the transaction?
– Did the buyer switch agents without good reason, or was the original agent no longer involved?
It’s not always cut-and-dried, and it can get messy. That’s why good recordkeeping, follow-up, and clear communication with buyers are key.
How to Protect Yourself
Here are a few practical tips to avoid procuring cause disputes:
– Document everything. Email summaries, showing reports, texts—it all helps.
– Use buyer agency agreements where allowed. It formalizes the relationship.
– Follow up consistently. Don’t assume a buyer will circle back to you.
– Educate your clients. Let them know how working with multiple agents can lead to problems.
Final Thought
Procuring cause isn’t about who worked hardest—it’s about who caused the sale. That distinction can mean the difference between getting paid and walking away empty-handed.
Disclaimer:
This post is for informational purposes only and does not constitute legal advice. Real estate laws and policies vary by state and brokerage. If you’re dealing with a procuring cause issue or commission dispute, please consult with your broker, board, or a qualified legal professional.