If you work in real estate, you have probably encountered procuring cause disputes. Working with clients or another agent in an office, you need to understand how procuring cause works so you can avoid conflict and get the commissions you deserve.
Procuring Cause
The facts and circumstances in a case will determine whether procuring cause can be determined. These factors are considered and applied by the panel in light of the guidelines that were established to aid them in determining procuring causes.
Is there a direct link between the broker's sale and his introduction of the property by establishing a proximate relationship?
A broker may only be entitled to a commission if he has established that the property was introduced and sold directly by him. This theory is known as the procuring cause theory.
Does the broker have a legal obligation to introduce the property?
Most states require that a broker have a legal obligation of introducing the property to be eligible to receive a commission. However, in a few states, a broker may still be entitled to a commission even if the seller has not entered into a contractual relationship with the agent.
Is the broker able to bring the property into the buyers' attention for a legitimate reason?
Procuring Cause Analysis must be fact-sensitive. Panel members are required to look at all the relevant factors. 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.
Do you have an ongoing relationship?
Brokers frequently make the mistake of thinking that the commission should be given to them simply due to their ongoing relationship with the client. This is incorrect as the agent involved must not be the same person as the client's brokerage.
Did the buyer divulge to the seller that a certain broker had brought him to the transaction?
In many states, it is against law for a broker not to disclose to the buyer that another person was involved in the transaction. The parties can agree not to disclose that a broker has been involved, but this is only temporary and will be rescinded when the transaction closes.
Did the buyer sign a buyer-broker agreement with the agent who showed them the property?
It is a big decision to buy a house. A qualified agent can help you navigate the process. You need to feel at ease with your agent before you sign a contract.
Are you looking for information about purchasing a property?
Don't hesitate contact me if your interest is in buying property or other types of real estate. I am an experienced and well-respected real estate professional and look forward to helping my clients find the perfect property.
FAQ
Is it better for me to rent or buy?
Renting is often cheaper than buying property. It is important to realize that renting is generally cheaper than buying a home. You will still need to pay utilities, repairs, and maintenance. The benefits of buying a house are not only obvious but also numerous. For instance, you will have more control over your living situation.
Are flood insurance necessary?
Flood Insurance protects from flood-related damage. Flood insurance can protect your belongings as well as your mortgage payments. Learn more about flood coverage here.
What time does it take to get my home sold?
It depends on many factors, such as the state of your home, how many similar homes are being sold, how much demand there is for your particular area, local housing market conditions and more. It may take up to 7 days, 90 days or more depending upon these factors.
Can I get another mortgage?
Yes, but it's advisable to consult a professional when deciding whether or not to obtain one. A second mortgage is often used to consolidate existing loans or to finance home improvement projects.
How can you tell if your house is worth selling?
If your asking price is too low, it may be because you aren't pricing your home correctly. You may not get enough interest in the home if your asking price is lower than the market value. Our free Home Value Report will provide you with information about current market conditions.
Statistics
- Private mortgage insurance may be required for conventional loans when the borrower puts less than 20% down.4 FHA loans are mortgage loans issued by private lenders and backed by the federal government. (investopedia.com)
- The FHA sets its desirable debt-to-income ratio at 43%. (fortunebuilders.com)
- 10 years ago, homeownership was nearly 70%. (fortunebuilders.com)
- This means that all of your housing-related expenses each month do not exceed 43% of your monthly income. (fortunebuilders.com)
- When it came to buying a home in 2015, experts predicted that mortgage rates would surpass five percent, yet interest rates remained below four percent. (fortunebuilders.com)
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How To
How to Locate Houses for Rent
Finding houses to rent is one of the most common tasks for people who want to move into new places. However, finding the right house may take some time. When you are looking for a home, many factors will affect your decision-making process. These factors include size, amenities, price range, location and many others.
It is important to start searching for properties early in order to get the best deal. Ask your family and friends for recommendations. You'll be able to select from many options.