Procuring Cause
The real estate agent or broker who initiates an unbroken chain of events that ultimately leads to a successful property sale, thereby earning the right to the commission. This agent is considered the primary reason the transaction occurred, regardless of which agent actually writes the purchase contract.
Example
“The listing agent claimed to be the procuring cause of the sale since she introduced the buyers to the property six months earlier.”
Memory Tip
Procuring cause is like being the matchmaker who gets credit - the agent who PROCURED (brought about) the CAUSE of the sale gets the commission.
Why It Matters
Procuring cause determines commission disputes between agents and protects consumers from being pressured by multiple agents claiming credit for a sale. Understanding this concept helps buyers and sellers navigate relationships with multiple agents while ensuring proper compensation goes to the agent who truly facilitated the transaction.
Common Misconception
Many people think the agent who writes the offer or is present at closing automatically deserves the commission, but procuring cause focuses on who initiated the series of events leading to the sale.
In Practice
If Agent A shows a buyer several properties over months, then Agent B writes an offer on a home Agent A originally showed, Agent A may claim procuring cause for the commission. Real estate boards often mediate these disputes through formal arbitration processes.
Etymology
This legal term emerged from 19th-century contract law, combining 'procuring' from Latin 'procurare' meaning 'to take care of' with 'cause' meaning the originating action that brings about an effect.
Common Misspellings
Compare today's mortgage rates
More in real estate
Other real estate terms you should know
Need financial definitions?
Clear definitions for 2,500+ finance, insurance, and investing terms.