📊 What Is Procuring Cause in Real Estate?

Procuring cause is a real estate principle that determines which agent is entitled to a commission by identifying who initiated and guided the series of events that led to a completed sale. In other words, the procuring cause is the agent who set the deal in motion and remained involved through closing.

How Procuring Cause Works

Because no single rule determines procuring cause, each situation is evaluated individually. Associations and arbitration panels look for the unbroken chain of events that led to a purchase. The agent who begins this chain — and stays meaningfully involved — is typically awarded commission rights.

  • Who introduced the buyer to the property?
  • Was the agent continuously involved in communication and follow-ups?
  • Did another agent step in and handle the actual negotiations?
  • Was there a break in service or relationship?
  • Did the agent’s efforts directly lead to the buyer making an offer?

If an agent simply shows a home but provides little to no follow-up, and a second agent completes the deal, the second agent is more likely to be deemed the procuring cause.

Why Procuring Cause Matters in Real Estate

Procuring cause determines who legally earns the commission. With today’s evolving compensation rules, establishing clear representation is more important than ever.

  • Prevents commission disputes between real estate agents.
  • Clarifies roles when buyers interact with multiple agents.
  • Protects clients from conflicting obligations.
  • Ensures compensation goes to the agent who actively worked on the deal.

Procuring cause focuses on action and involvement, not who wrote the offer, who opened the door, or who the buyer likes more.

Example of Procuring Cause

A buyer attends an open house with Agent A, expresses interest, and receives follow-up guidance. Later, the buyer calls Agent B to write the offer. Agent A can still be considered the procuring cause if:

  • They introduced the buyer to the property.
  • They maintained consistent communication.
  • The buyer’s intent to purchase began due to Agent A’s efforts.

However, if Agent A never followed up and Agent B handled all negotiations, showings, and documentation, then Agent B is the more likely procuring cause.

Why Procuring Cause Matters for FSBO Sellers

FSBO sellers benefit from understanding procuring cause because it affects how agents may claim payment when bringing a buyer. Knowing the concept helps avoid disputes and ensures expectations are clear.

  • Buyer agents may claim procuring cause even without a signed agreement.
  • Clear communication with buyer agents helps prevent misunderstandings.
  • FSBO sellers should maintain records of all interactions with agents.
  • Listing on the MLS through Brokerless ensures transparent buyer-agent communication.

🔗 Related Resources for Buyers & Sellers

Frequently Asked Questions

Does procuring cause depend on who writes the offer?
No. The key factor is who initiated and maintained the chain of events leading to the sale.

Can more than one agent be the procuring cause?
Rarely. Typically the commission goes to the agent whose actions were the primary reason for the buyer’s purchase.

Does procuring cause require a written agreement?
No, but written agreements greatly reduce disputes.

How can FSBO sellers avoid procuring cause disputes?
Keep records, communicate clearly, and document any compensation agreements with buyer agents.

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