Who's Procuring Cause?

[droyale]

I am a realtor in MA. I have a buyer's agency relationship with a client who expressed to me an interest in a house she saw 4 months ago through the listing agent who showed her the property. She wanted to take a closer look with me representing her.

Upon making the appointment, we met the same listing agent at the property, he immediately recognized her and stated to me (in front of my client) that he was procuring cause and owed me no commission. I stated that my client saw the property several months ago and he replied, "it doesn't matter; she is here because of my advertising and I showed her the house first." (Incidentally, she never signed anything with him)

My client wants to make an offer on this property and I want to be compensated.

What advice can you offer? Is he procuring cause?

[kyle422]

Did you have an exclusive buyers agreement in effect?
If you didn't have one then the agent that showed the property to the buyer is the procuring cause.

[droyale]

Other agents in my office do not agree. They said that unless he disclosed himself as dual agency at the first personal meeting, he does not "own" the buyer. I'm told, "nobody owns the buyer,".

Also, at the appointment, the other agent had asked me what was my relationship to the buyer. I replied, "buyer's agent". He then asked, "From when?", I replied, "Last week". He did not respond and we left.

Upon making the offer, should I show him the Buyer's Agreement as well as the Agency disclosure?

[kyle422]

Other agents in my office do not agree. They said that unless he disclosed himself as dual agency at the first personal meeting, he does not "own" the buyer. I'm told, "nobody owns the buyer,".

Also, at the appointment, the other agent had asked me what was my relationship to the buyer. I replied, "buyer's agent". He then asked, "From when?", I replied, "Last week". He did not respond and we left.

Upon making the offer, should I show him the Buyer's Agreement as well as the Agency disclosure?

My best advice would be to call your local board of Realtors and find out if they offer a free "legal hotline", which would allow you to speak to a lawyer.

[Salt River Media]

Procuring cause is defined legally and in the NAR Code of Ethics and
Arbitration Manual as, “A cause originating a series of events which, without break in their continuity, result in accomplishment of prime objective of the
employment of the broker who is producing a purchaser ready, willing, and able to buy real estate on the owner’s terms. Mohamed v. Robbins,
23 Ariz. App. 195, 531 p.2d 928, 930.”

"A broker will be regarded as the ‘procuring cause’ of a sale, so as to be entitled to commission, if his efforts are the foundation on which the negotiations resulting in a sale are begun.”

NAR's Procuring Cause Arbitration Guidelines

[kensmith]

Other agents in my office do not agree. They said that unless he disclosed himself as dual agency at the first personal meeting, he does not "own" the buyer. I'm told, "nobody owns the buyer,".

Also, at the appointment, the other agent had asked me what was my relationship to the buyer. I replied, "buyer's agent". He then asked, "From when?", I replied, "Last week". He did not respond and we left.

Upon making the offer, should I show him the Buyer's Agreement as well as the Agency disclosure?

In many states if the listing agent doesn't disclose that they are a dual agent then they are in violation of the state laws and would not only not be procurring cause, plus if they are to much of a pain in the ass you could have your buyer file a formal complaint. In IL you have to have the buyer sign a form before you walk into the home showing that you are acting as a dual agent.

The advice of calling your legal hotline is very good and would be the first thing I would do.