The definition of procuring cause is articulated in Black's Law Dictionary:

"The proximate cause; the cause originating a series of events which, without break in their continuity, result in the accomplishment of the prime object. The inducing cause; the direct or proximate cause. Substantially synonymous with efficient cause."

A broker will be regarded as the "procuring cause of a sale, so as to be entitled to commission, if his efforts are the foundation on which the negotiations resulting in a sale are begun. A cause originating a series of events which, without break in their continuity, result in accomplishment of the prime objective of the employment of the broker who is producing a purchaser ready, willing, and able to buy real estate on the owner's terms."

Mohamed v. Robbins, 23 Ariz. App. 195, 531 p.2d 928, 930.

Many REALTORS^® have tried, albeit unsuccessfully, to develop a single, comprehensive template that could be used in all procuring cause disputes to determine entitlement to the sought-after award without the need for a comprehensive analysis of all relevant details of the underlying transaction. Such efforts, while well-intentioned, were doomed to failure in view of the fact that there is no "typical" real estate transaction any more than there is "typical" real estate or a "typical" REALTOR^®.

The Board or its MLS may not establish a rule or regulation which purports to predetermine entitlement to any awards in a real estate transaction.

If you find yourself in a procuring cause situation, here are some things you will need to do:

1. You will need to verify that your Buyers have, in fact, bought a property to which you introduced them, and about which you stayed in touch with them.

2. Notify your broker immediately.

3. Hopefully, you will have in your possession the following documents:
   1. Buyer Agency Agreement
   2. Log of activities
      • Explanation of Company policy on Agency.
      • Commitment by Buyer to Buyer Agency.
        (If no formal Buyer Agency Agreement was entered into, at least have your Buyers' signed CIS Disclosure form.)
      • Properties that were shown (including subject property.)
      • Information on financing.
      • Continuous communication with Buyer.

4. Document everything. (It will never be fresher in your mind than at the present time.)

5. Have your Broker call the second Broker to see if a compromise can be worked out. (It might be advantageous to everyone if a face-to-face meeting is scheduled. However, this is not required.)

6. If a compromise cannot be worked out, notify the listing broker and the second broker that after settlement occurs, an Arbitration Complaint will be filed.

As professionals, none of us want to be in conflict with each other. Yet, it sometimes happens. I trust that the above information will help to resolve the matter amicably.

See you next week.

Back to Ronnie REALTOR^® Archive >>