Procuring Cause
Definition
The agent whose actions were the primary reason a real estate transaction was completed, determining which agent earns the commission in a sale.
Example
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.
Exam Tip
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 Buyer Rep Terms
Buyer Broker Duties
The fiduciary obligations a buyer's agent owes to their client, including loyalty, obedience, disclosure, confidentiality, accounting, and reasonable care.
Buyer Representation Disclosure
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.
Cooperative Compensation
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.
Buyer Consultation
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.
Buyer Loyalty Obligation
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.
Termination of Buyer Agency Agreement
The legal ending of a buyer representation agreement, which can occur through expiration, mutual consent, breach, or specific termination provisions outlined in the contract.
Frequently Asked Questions
Test Your Buyer Rep Knowledge
Practice with exam-style questions to make sure you can apply Procuring Cause and other buyer rep concepts.