Broker A shows a prospective buyer a home three times, answers her detailed questions, and helps her draft an offer that the seller rejects. Weeks later the buyer approaches Broker B, who submits a nearly identical offer that closes. Neither broker had a written buyer representation agreement. Both now claim the commission, and the arbitration panel must decide which broker's work actually brought about the sale rather than who prepared the accepted paperwork. Which doctrine governs that decision?
Correct Answer
C) Procuring cause
Procuring cause is the doctrine an arbitration panel applies when two brokers each claim the same fee. The panel asks whose efforts started the uninterrupted sequence of events that resulted in the sale, weighing the continuity of each broker's involvement and whether the first broker abandoned the buyer or was estranged from her. Signing the accepted offer or appearing at settlement is evidence, but it does not decide the question.
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Related Topics & Key Terms
Key Terms:
Related Concepts
Price fixing is an illegal antitrust practice in which competing real estate brokerages agree to charge the same commission rates, fees, or other pricing for their services. It is a per se violation of the Sherman Antitrust Act.
Florida brokers are required to maintain transaction records and escrow records for a minimum of five years.
A tie-in arrangement is an illegal antitrust practice in which a seller conditions the purchase of one product or service on the buyer's agreement to purchase a separate product or service.
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