What is Procuring Cause in Real Estate?

In real estate, “procuring cause” means the actions that lead directly to the sale of a property. It’s important because it helps decide which real estate agent should get paid when a property sells.

For example, if you hire an agent to help you sell your house, and that agent finds a buyer who eventually buys the house, that agent is probably the “procuring cause”—they’re the one who helped make the sale happen.

But what if someone else helps the buyer buy the house? In that case, the agent who started the process by showing the house to the buyer (or helping them in some way) might still be the one who gets the commission, even if another agent closes the deal. The key thing is whether the first agent’s actions were the reason the buyer made an offer and bought the property.

So, procuring cause just means proving which agent’s work led to the sale of the house. If there’s a dispute between agents, the one who can show they helped the buyer get the property might be the one who gets paid the commission.

It’s important for agents and sellers to understand this, especially when there are multiple agents involved.