Sometimes a new client asks us to represent them on the purchase of a home that another Realtor showed them.
Unfortunately, the “procuring cause” principle may prevent us from doing so.
Broadly speaking, a Realtor is the procuring cause of a sale if they are the first to show you a home that you ultimately purchase. This means they may be entitled to a commission even if another Realtor represents you during the transaction. Realtor #1 can bring an action to collect the full commission from Realtor #2.
Avoid Procuring Cause Problems
Fortunately, if buyers simply communicate to a Realtor that they are already working with another Realtor before they see a property, the procuring cause issue is resolved.
One reason Realtors hold open houses is to find new clients. If you have a conversation with a Realtor at an open house, it is a good idea to mention that you are already working with another Realtor to avoid procuring cause issues.
Click here to learn more.