Commission College - "procuring cause factors" in real estate commission disputes

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EVERY REAL ESTATE PROFESSIONAL (BROKER AND AGENT) SHOULD UNDERSTAND THE "PROCURING CAUSE" PRINCIPLES.

When you are a real estate broker, salesperson, or agent involved in a real estate commission dispute, one of the issues that might pop up at a Realtor board arbitration hearing is that of "procuring cause" of the sale.

If you have to prove this, our video will help you understand some of the basic factors discussed by N.A.R. and C.A.R. and many local Realtor boards. In this episode of "commission college" Attorney Steve seeks to explain this concept in easy-to-understand terms.

Some of the important factors are:

1. Did you initially inspire the buyer to get interested in the residential or commercial property, lease, business opportunity, etc.?

2. Did you show the buyer the property?

3. Did you write the offer?

4. Did you provide agency disclosures and get those signed?

5. Did you do any subsequent research, or exercise due diligence?

6. Did the agent abandon the client by failing to follow up or show the property etc?

7. Was there a chain of continuity leading up to the closing?

8. What reasons were there for a break in the chain?

9. What other equity factors are present?

10. Were any deposits obtained.

There are probably the top 10 things that an arbitration panel might look at in a committee hearing. This is not an exclusive list and no one factor is weighted more heavily than the others. All factors should be reviewed and discussed. As a complaining party or responding party in arbitration (and also a board ethics hearing) you need to be prepared to make your case and meet the burden of proof.

If you need help preparing for a board commission hearing or arbitration case, we can help you review the procuring cause factors and see where you stand. Some, but not all cases, may be able to take on a contingency fee basis. Call us at (877) 276-5084 or click on the link above.

We wish you the best of luck and hope this video has been helpful!

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