Procuring Cause

A procuring cause refers to someone who set into motion an unbroken series of events leading to a completed transaction. Most of the time this refers to an individual who introduced a buyer to a seller or a tenant to a landlord. The concept of a procuring cause often refers to the real estate agent who caused the buyer to buy a property. In most cases, it is the buyer’s broker. However, if another agent showed the buyer a property, that agent may be entitled to the commission instead of the buyer’s broker. This area of real estate law is complicated and guided by state law. When there is a dispute over which agent was the procuring agent, it can lead to law suits and may foul up the sale of a property. When working with a buyer’s broker, follow their instructions on how to handle other agents.