Procuring cause disputes are a common problem in real estate. Whether you are working with your own clients, or with another agent in the office, understanding how procuring cause works can help you avoid conflict and make sure that you receive the commission you earned.
Procuring Cause
The facts and circumstances in a case will determine whether procuring cause can be determined. These factors are taken into consideration by the panel members, who then apply them to determine procuring cause.
Was there a direct, proximate connection between the broker's introduction of the property?
A broker will only be eligible for a commission when he proves that the property was purchased and brought to his attention. This is also known as the procuring reason theory.
Is there a legal obligation for the broker to introduce the property
To be eligible for a commission, a broker must have a legal obligation in most states. In some states, however, a broker can still be entitled to a percentage of the commission even though the seller has not entered into any contractual relationship.
Is there a legitimate reason for the broker to bring the property to your attention?
Procuring cause analyses must be fact-sensitive. They require the panel member to examine all relevant factors and not just a few. This includes whether the broker provided a proposal upon which the sale was based and whether the broker fulfilled any buyer prerequisites.
Is there an ongoing relationship between the broker and the client?
Brokers make the common error of thinking that they should get the commission because they have a long-standing relationship with clients. This is a mistake because the broker representing the client must be different.
Did the buyer disclose to the seller the fact that a certain broker brought him to this transaction?
Recall that in many states it is against the law that a broker discloses to the buyer that he brought someone else to the transaction. While the parties can agree to not reveal that a broker is involved, it is temporary and will be rescinded once the transaction closes.
Did the buyer sign a buyer-broker agreement with the agent who showed them the property?
Buying a home is a huge decision. You need an experienced and qualified agent to help you with the entire process. You should make sure you are comfortable working with your agent if you have never negotiated.
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 a respected and highly-experienced real estate professional. I look forward finding the right property for your needs.
FAQ
What is a Reverse Mortgage?
A reverse mortgage is a way to borrow money from your home without having to put any equity into the property. It works by allowing you to draw down funds from your home equity while still living there. There are two types available: FHA (government-insured) and conventional. If you take out a conventional reverse mortgage, the principal amount borrowed must be repaid along with an origination cost. FHA insurance will cover the repayment.
Is it possible to quickly sell a house?
You may be able to sell your house quickly if you intend to move out of the current residence in the next few weeks. You should be aware of some things before you make this move. First, find a buyer for your house and then negotiate a contract. Second, prepare the house for sale. Third, you need to advertise your property. Lastly, you must accept any offers you receive.
How long does it take for my house to be sold?
It all depends on several factors such as the condition of your house, the number and availability of comparable homes for sale in your area, the demand for your type of home, local housing market conditions, and so forth. It can take from 7 days up to 90 days depending on these variables.
What are the chances of me getting a second mortgage.
Yes. However it is best to seek the advice of a professional to determine if you should apply. A second mortgage is often used to consolidate existing loans or to finance home improvement projects.
Statistics
- 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)
- This seems to be a more popular trend as the U.S. Census Bureau reports the homeownership rate was around 65% last year. (fortunebuilders.com)
- This means that all of your housing-related expenses each month do not exceed 43% of your monthly income. (fortunebuilders.com)
- 10 years ago, homeownership was nearly 70%. (fortunebuilders.com)
- 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)
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How To
How to Find a Real Estate Agent
The real estate market is dominated by agents. They can sell properties and homes as well as provide property management and legal advice. The best real estate agent will have experience in the field, knowledge of your area, and good communication skills. For recommendations, check out online reviews and talk to friends and family about finding a qualified professional. Local realtors may also be an option.
Realtors work with buyers and sellers of residential properties. A realtor's job is to help clients buy or sell their homes. As well as helping clients find the perfect home, realtors can also negotiate contracts, manage inspections and coordinate closing costs. A commission fee is usually charged by realtors based on the selling price of the property. However, some realtors don't charge a fee unless the transaction closes.
The National Association of Realtors(r), (NAR), has several types of licensed realtors. NAR membership is open to licensed realtors who pass a written test and pay fees. To become certified, realtors must complete a course and pass an examination. NAR designates accredited realtors as professionals who meet specific standards.