What does the term "procuring cause" typically relate to in real estate?

The term "procuring cause" is primarily associated with situations in real estate that involve commission disputes, especially regarding how a sales transaction was initiated and which party or agent truly brought about the sale. It plays a crucial role in determining entitlement to a commission, specifically in cases of open listings or situations where multiple agents might be involved.

In the context of a disputed commission, defining the procuring cause involves identifying which agent's actions directly led to the eventual sale of a property. This may include showing the property to a buyer, negotiating offers, or any other significant contributions that ultimately resulted in the transaction. The concept is instrumental in determining who is owed a commission, especially when the effort of more than one agent is present.

This understanding positions procuring cause as a pivotal term, particularly in disputes about commission claims, which directly relates to the complexities often encountered in open listing scenarios where multiple agents can claim to have aided in closing a deal. Understanding it helps agents navigate commission disputes and ensures they can articulate their role in facilitating transactions clearly.