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Real estate disputes and procuring cause

On Behalf of | Feb 4, 2019 | Real Estate Disputes |

Real estate disputes can arise for many reasons. One example involves the question of commission. Real estate agents that partake in the buying or selling of a property can receive a commission as stated within their contract. Although this seems like a fairly straightforward matter, there are situations when a real estate agent’s “assistance” in the transaction is a bit of a grey area.

One example that can lead to a dispute — the idea of procuring cause.

What is procuring cause? This is a legal term that can come up when two real estate agents dispute which one gets the commission for the sale of a property. Agents generally follow a two-step process to establish the right to receive commission. First, the agent must show they followed applicable rules. This first step is fairly transparent. The second step is more complicated. This step involves showing which agent’s efforts led to the buyer submitting an offer to purchase the property.

Which agent will win? The result will be based on various considerations. These include a review of which agent made reasonable efforts to develop a relationship with the parties, whether or not there was ongoing contact and whether or not one agent was perceived as inactive during the transaction.

These disputes are just one example of the legal issues that can arise during closing. As such, it is often wise to have legal counsel present as an advocate on your behalf to better ensure your legal rights are represented during the closing process.