As a real estate agent, you‘ll put in many hours working with your clients before receiving payment. This includes finding and showing the property, marketing it, and all of the negotiations, phone calls and travel time.
After you’ve done all of this work and your client buys or sells the property, you rightfully feel entitled to a commission of the sale. That is where Procuring Cause comes in. But what is procuring clause?
Procuring cause is simply your right to collect a commission on the sale of a property. It refers to the interaction between a real estate agent and a buyer or seller that directly results in the sale.
But what if the buyer uses more than one agent? What if both agents happened to show the same piece of property that was purchased? Who is entitled to commission?
After signing the contract in the MLS, other agents may file a complaint leading to a commission dispute if they, too, had shown the buyer the property which was purchased. This is where the issue lies as both of you likely did the work but only one of you will get paid.
If you are facing a commission dispute, there are some things you should know.
There is no predetermined rule of entitlement. [Read more…]