Glossary · Agency & representation
Procuring Cause
Procuring cause is the standard used to decide which agent earns a commission when more than one may claim credit for a sale. It refers to the agent whose actions set in motion an unbroken chain of events that led the buyer to purchase the property. Disputes turn on the facts, not simply who showed the home first or attended closing.
How is procuring cause determined?
There is no single mechanical test. Decision-makers weigh the whole sequence of events, including who first introduced the buyer to the property, whether that agent's involvement continued, and whether any break interrupted the chain leading to the purchase.
Being first to show a home does not automatically win. If the original agent abandoned the buyer or the buyer independently restarted with a new agent, the chain may be broken.
Factors like continuous effort, the buyer's reason for switching, and the conduct of each agent all shape the outcome.
Why does procuring cause matter?
Procuring cause decides who gets paid, so it directly affects agents' income and can create tension between brokerages. For buyers and sellers, unclear situations can produce disputes that complicate an otherwise smooth transaction.
Clear written agreements and honest communication about who is helping a buyer reduce these conflicts. When everyone knows who represents the buyer, credit for the sale is far easier to establish.
How are procuring cause disputes resolved?
Most disputes are handled between brokers, and unresolved ones often go to arbitration under association or MLS rules rather than to court. A panel reviews the facts and decides which agent's efforts truly caused the sale.
Because these are fact-heavy cases, documentation matters. Showing records, correspondence, and a signed buyer representation agreement can strongly support an agent's claim to the commission.
Worked example. For example, agent A shows a buyer a home once, then stops responding to calls. Weeks later the buyer, frustrated, hires agent B, who reengages, negotiates, and closes the deal. Even though agent A showed the property first, an arbitration panel could find agent B was the procuring cause because A's chain of events broke.
Common mistakes with Procuring Cause
- Assuming the first agent to show a home automatically earns the commission regardless of what happened next.
- Failing to use a written buyer representation agreement, which helps establish who represents the buyer.
- Letting a buyer bounce between agents without clarifying who is truly working for them.
- Not documenting showings, communications, and effort, which are the evidence that decides disputes.
- Believing attendance at closing proves procuring cause; it is the chain of events, not presence, that matters.
Real Estate Commission
The fee paid to brokerages for their services in a transaction, typically a percentage of
Define TermBuyer Representation Agreement
A contract in which a buyer hires an agent to represent them in finding and purchasing a p
Define TermReferral Fee
A portion of commission paid to another agent or broker for referring a client.
Define TermCommission Split
How commission income is divided, both between brokerages and between an agent and their b
Define