Commission fights between agents happen more often than you think. I’ve seen deals go south when agents both think they deserve the commission. That’s where procuring cause comes in.
This often-debated real estate concept determines which agent should get paid.
In this guide, we’ll cover what procuring cause is, what types of disagreements can arise, how they’re usually resolved, and what you can do to protect yourself from potential disputes.
You deserve to know the way agents get paid. I want you to feel confident you’re not going to get stuck in a commission battle. It’s a simple breakdown.
What Is Procuring Cause in Real Estate?
Procuring cause determines which agent earned the right to collect commission on a sale.
It answers one question: who actually made the deal happen?
The National Association of Realtors calls it “the proximate cause of a transaction.” This means the agent who started an unbroken chain of events leading to the sale.
It’s not a rigid rule with clear lines. Instead, it’s a concept that gets evaluated case by case.
Think of it as connecting dots between the first showing and the final closing.
Why Is It Important?
Understanding the procuring cause protects everyone involved in a real estate transaction.
Determines commission rights. Only one agent gets paid per transaction. Procuring cause decides who that is.
Prevents agent disputes. Clear guidelines reduce conflicts between competing agents claiming the same commission.
Protects buyers and sellers. You won’t get caught between fighting agents or face delayed closings.
Creates accountability. Agents must document their work and maintain relationships with clients throughout the process.
Common Causes of Procuring Cause Disputes
Most disputes happen when communication breaks down or buyers work with multiple agents.
Working with Multiple Agents
Viewing homes with different agents creates confusion about who deserves credit. Each agent might claim they influenced your decision. This gets messy fast, especially if you saw the same property twice with different people.
Attending Open Houses Alone
Walking into an open house without your agent can trigger problems. The listing agent might think you’re unrepresented and try to work with you directly. Later, your original agent could claim they showed you similar properties first.
Submitting Multiple Offers
Using different agents to write offers on various properties complicates things. If you buy through Agent B after Agent A showed you homes for weeks, Agent A might file a claim.
Losing Contact With Your Agent
Radio silence kills agent relationships. If weeks pass without talking, then you reconnect and buy a house, your agent might struggle to prove continuous representation.
How Disputes Are Resolved
Real estate boards have formal processes to handle commission disagreements.
Arbitration Process:
Agents file complaints with their local real estate association. They submit evidence showing their role in the transaction. The NAR provides a procuring cause worksheet to organize facts and timelines. Both parties present their documentation before a hearing date gets scheduled.
Hearing and Panel Decision:
A panel of experienced agents reviews the case. Each agent testifies about their involvement. They answer questions and present emails, showing schedules, and communication records.
The panel examines who initiated contact, maintained the relationship, and directly caused the sale. After cross examination, they vote on commission entitlement.
Tips to Avoid Procuring Cause Disputes
Follow these strategies to keep your home buying experience smooth and conflict free.
Tips to Avoid Procuring Cause Disputes
Follow these strategies to keep your home buying experience smooth and conflict free.
- Work with a Single Agent. Choose one agent and stick with them throughout your search. Consistent representation eliminates confusion about who’s representing you. Your agent will learn your preferences and work harder knowing they’re your only contact.
- Sign a Buyer Agency Agreement. Put everything in writing from day one. This contract defines your agent’s responsibilities, your commitment to exclusivity, and how commission works. It protects both parties and sets clear expectations.
- Maintain Communication. Stay in touch even during slow periods. Send quick texts or emails every couple weeks. Let your agent know if you’re still looking or taking a break. Regular updates prove an ongoing relationship.
- Tour Properties with Your Agent. Always schedule showings through your representative. If you see an open house sign, call your agent first. They’ll either join you or formally notify the listing agent about your representation.
- Avoid Contacting Listing Agents Directly. Let your agent handle all communication with sellers and their representatives. Direct contact can create the appearance that you’re working without representation. Your agent knows how to negotiate and protect your interests.
Conclusion
Don’t let procuring cause real estate disputes derail your home purchase. I have seen too many buyers lose their dream home over agent disagreements. It is truly tragic.
The solution? If you find one solid agent with whom you can build trust from the beginning using simple, no-nonsense agreements and communicating openly, you can save weeks.
Buying a home should be exciting. It should be an experience for you.
If you have questions about how to choose an agent, pop them down in the comments for me, or send this to a friend house hunting!
Frequently Asked Questions
Can two agents split commission on one sale?
Typically no. Arbitration panels usually award full commission to one agent based on who proved the procuring cause. Split decisions happen only if both agents agree voluntarily.
What happens if I switch agents mid search?
Your first agent might claim procuring cause if they introduced you to the property you buy. Always formally end one relationship before starting another.
Does attending an open house create a relationship with that agent?
Not automatically, but it can complicate things. If the listing agent helps you substantially and you have no other agent, they might claim procuring cause.
How long does arbitration take?
Most cases resolve within 30 to 90 days after filing. Complex disputes with lots of evidence can take longer and potentially delay your closing.
Can I refuse to let agents fight over my transaction?
You can’t stop agents from filing disputes with each other. However, working with one agent from start to finish prevents these situations completely.
