If you work in real estate, you have probably encountered procuring cause disputes. Understanding how procuring cause works, whether you work with clients directly or with an agent, can help you avoid conflicts and ensure that you get the commission you have earned.
Procuring Cause
The determination of procuring cause depends on the facts and circumstances of a particular case. These factors are taken into consideration by the panel members, who then apply them to determine procuring cause.
Did the broker establish a direct connection between his sale and that of the property?
A broker can only receive a commission if the property was sold and introduced by him. This is called the procuring theory.
Is it legal for the broker to offer the property?
A broker must have a legal obligation under the law to bring the property to receive a compensation. A few states allow a broker to still receive a commission, even if the seller does not have a contractual relationship.
Does the broker have a valid reason to sell the property?
A procuring cause analysis must be fact-sensitive and requires the panel member to consider all of the relevant factors, and not just one or two. Among these factors are whether the broker made a proposal on which the sale was based, and whether the broker satisfied any prerequisites of the buyers.
Does the broker have an ongoing relationship with the client?
Brokers often make the mistake of believing that the commission should go to them simply because they maintain a relationship with their client. This is incorrect as the agent involved must not be the same person as the client's brokerage.
Was the buyer open to telling the seller about the broker who brought him to the transaction
It should also be remembered that, in many states, it is against the law for a broker to disclose to the buyer that he has brought someone else to the transaction. Although the parties may agree to not disclose that a broker was involved, this agreement is temporary and will be canceled when the transaction closes.
Was the buyer able to sign a buyer broker agreement with the agent that showed them the property.
It's a major decision to purchase a home. A qualified agent can help you navigate the process. You need to feel at ease with your agent before you sign a contract.
Do you want to learn more about buying a home?
Contact me if you are interested in learning more about purchasing a property, or any other type real estate. I am an experienced and well-respected real estate professional and look forward to helping my clients find the perfect property.
FAQ
How can I get rid Termites & Other Pests?
Termites and many other pests can cause serious damage to your home. They can cause damage to wooden structures such as furniture and decks. It is important to have your home inspected by a professional pest control firm to prevent this.
How can I find out if my house sells for a fair price?
It could be that your home has been priced incorrectly if you ask for a low asking price. Your asking price should be well below the market value to ensure that there is enough interest in your property. To learn more about current market conditions, you can download our free Home Value Report.
Is it possible to quickly sell a house?
If you plan to move out of your current residence within the next few months, it may be possible to sell your house quickly. Before you sell your house, however, there are a few things that you should remember. First, find a buyer for your house and then negotiate a contract. The second step is to prepare your house for selling. Third, advertise your property. Lastly, you must accept any offers you receive.
Statistics
- The FHA sets its desirable debt-to-income ratio at 43%. (fortunebuilders.com)
- This means that all of your housing-related expenses each month do not exceed 43% of your monthly income. (fortunebuilders.com)
- It's possible to get approved for an FHA loan with a credit score as low as 580 and a down payment of 3.5% or a credit score as low as 500 and a 10% down payment.5 Specialty mortgage loans are loans that don't fit into the conventional or FHA loan categories. (investopedia.com)
- 10 years ago, homeownership was nearly 70%. (fortunebuilders.com)
- Some experts hypothesize that rates will hit five percent by the second half of 2018, but there has been no official confirmation one way or the other. (fortunebuilders.com)
External Links
How To
How to Find Houses to Rent
Renting houses is one of the most popular tasks for anyone who wants to move. But finding the right house can take some time. There are many factors that can influence your decision-making process in choosing a home. These factors include the location, size, number and amenities of the rooms, as well as price range.
You can get the best deal by looking early for properties. You should also consider asking friends, family members, landlords, real estate agents, and property managers for recommendations. You'll be able to select from many options.