What Is Procuring Cause in Real Estate?
Procuring cause is the unbroken chain of events started by a broker’s efforts that actually leads the buyer to purchase, and it is what entitles that broker to the commission. Disputes between cooperating brokers over it go to arbitration, not to whoever merely wrote the offer.
How the exam tests procuring cause
These mirror the phrasing you will see on test day. Answer them, then read the explanation whether or not you got it right.
Procuring cause refers to the broker who:
Every procuring cause question, answered
Every question above with its correct answer and the reasoning behind it. Read the explanations for the ones you answered correctly too. A lucky guess and knowing the rule look identical on a score report. These are sample questions from our larger bank.
1. Procuring cause refers to the broker who:
Why: Entitlement turns on causation — beginning an unbroken series of events that produced the ready, willing and able buyer. Being first to open the door or first to file a registration form is evidence, not the standard itself.
2. In a procuring cause dispute between two cooperating brokers, the decisive question is generally:
Why: Procuring cause turns on which broker set in motion an uninterrupted series of events that resulted in the sale. Merely being the first to show any property is not enough, because an abandoned or broken chain of causation transfers the claim to the broker who actually carried the buyer to contract.
3. Broker Lin shows a buyer a home in May. The buyer stops responding, then in August works with Broker Ferraro, who reshows the same home, negotiates, and closes the sale. On procuring cause, the stronger position belongs to:
Why: Ferraro's continuous involvement from reshowing to closing forms the unbroken chain that produced the sale. Lin's earlier introduction was interrupted by the buyer's abandonment, and a broken chain of events generally defeats a procuring cause claim.
4. Broker Deane introduced the Larkins to a home and toured it with them three times. After a falling-out with Deane, the Larkins wrote their offer through Broker Ilsa, who had never shown them the property. In the resulting commission dispute, the decisive question will be:
Why: Procuring cause disputes are decided on the continuity of the effort that produced the sale, not on whose name got typed onto the contract. A broker who merely writes up a buyer another broker cultivated often loses the arbitration.
5. Under an open listing, a seller may:
Why: An open listing lets a seller engage multiple brokers and owe a commission only to the one who procures the buyer. Owing commissions to every broker who showed the property misdescribes the arrangement, which pays a single procuring cause.
Where procuring cause sits in the exam vocabulary
Related exam terms
Procuring Cause belongs to the basis for commission entitlement family of exam concepts. When it is solid, take the free real estate exam prep or browse the full real estate exam vocabulary.
