Procuring cause is the unbroken chain of events initiated by the agent that leads to the successful closing of a transaction. Factors include who first introduced the buyer to the property, who negotiated the terms, and who facilitated the transaction from start to finish.
Agent A shows a buyer a property but the buyer doesn't make an offer. Three months later, Agent B shows the same buyer the same property and the buyer purchases it. Agent B is likely the procuring cause because she re-initiated the chain of events leading to the sale.
Procuring cause disputes are common on exams. Remember: it's not just who showed the property first — it's who started the unbroken chain leading to the close. Multiple factors are considered including time elapsed and who wrote the offer.
Related Terms
Related Concepts
The fiduciary obligations a buyer's agent owes to their client, including loyalty, obedience, disclosure, confidentiality, accounting, and reasonable care.
A form that explains to the buyer the types of agency relationships available and the duties associated with each, required to be provided before substantive discussions begin.
The practice of a listing broker sharing commission with a buyer's broker, historically offered through the MLS but now prohibited from MLS display under the 2024 NAR settlement.
An initial meeting between a buyer and agent to discuss the buyer's needs, explain agency relationships, review representation agreements, and establish expectations for the home-buying process.
The duty of a buyer's agent to act solely in the buyer's best interest, avoiding any conflicts of interest and putting the buyer's needs above the agent's own financial interests.
Frequently Asked Questions
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