Understanding Procuring Cause!!
Categories: Buying Real Estate, Real Estate News, Selling Real Estate
hiWorking with a buyer can be very stressful and many times the buyer feels the agent is not showing them everything. Possibly the agent is showing only what the buyer has asked to see and has eliminated properties that are listed as “short sales” or have a pool, when the buyer was adamant they did not want a pool. It is very important to educate your buyer, keep detailed notes and continuous communication with them. Listed below are some of the events an arbitration panel will analyze and consider in determining the procuring cause of a transaction. The factors aren’t always weighed the same and not every factor is applicable in every instance.
- Locating the property that meets a buyer’s needs.
- Conducting ongoing communication with the buyer.
- Showing the property.
- Discussing the benefits of the property with the buyer.
- Discussing possible terms with the buyer.
- Discussing financing with the buyer.
- Writing the offer.
- Negotiating the offer to acceptance.
- Helping the buyer obtain financing.
- Helping the buyer with the inspections.
- Performing all non-attorney duties leading to closing.
- Going to closing.
The definition of procuring cause is not “black and white”. The guidelines are established by the National Association of Realtors. When a hearing is held on procuring cause, the panel is looking to see that there was an “unbroken” chain of events from a specific broker that lead to the buyers making the decision to buy the property and resulting in a successful sale. In other words, the sale would not have occurred but for the broker’s efforts. For more information on “Whose Sale Is It” read NAR’s article that outlines six factors determining procuring cause.
Your first line says it all Joann. Buyers are not yet in tune with todays market and think we are in 2007 when the streets were lined with for sale signs. I am reluctant to show junk but sometimes it is necessary so that a buyer can appreciate a good property when we find it… Your article was very helpful JoAnn!
Tough times right now, but true veteran’s like yourself will weather the storm. Good luck!