If you work in real estate, you have probably encountered procuring cause disputes. It doesn't matter if you are working with clients yourself or with another agent at the office. Understanding how procuring Cause works can help to avoid conflict and ensure you receive the commission that you earned.
Procuring Cause
The facts of each case play a key role in determining procuring cause. The panel members consider these factors and apply them in light of the guidelines established to assist them in determining procuring cause.
Did the broker establish a direct and proximate link between his introduction of the property and the sale?
A broker can only receive a commission if the property was sold and introduced by him. This is called the procuring theory.
Is there a legal obligation for the broker to introduce the property
To be eligible for a commission, a broker must have a legal obligation in most states. In some states, however, a broker can still be entitled to a percentage of the commission even though the seller has not entered into any contractual relationship.
Does the broker have a valid reason to sell the property?
A procuring cause analysis must consider all factors. The panel member must not only focus on one but also take into account the other relevant factors. These factors include whether or not the broker offered a sale, and whether or not the buyer met any of the prerequisites.
Does the broker have an ongoing relationship with the client?
Brokers frequently make the mistake of thinking that the commission should be given to them simply due to their ongoing relationship with the client. This is a mistake because the broker representing the client must be different.
Did the buyer divulge to the seller that a certain broker had brought him to the transaction?
It should also be remembered that, in many states, it is against the law for a broker to disclose to the buyer that he has brought someone else to the transaction. It is possible for the parties to agree not to disclose that a brokerage was involved. However, this is temporary and will not be enforced after the transaction closes.
Did the buyer sign a buyer-broker agreement with the agent who showed them the property?
The purchase of a home can be a major decision. It is important to have a qualified and experienced agent to guide you through the process. If you haven't yet worked with an agent to negotiate, you should get to know the person before you hire them.
Want to know more about buying a house?
Contact me if you are interested in learning more about purchasing a property, or any other type real estate. I am a respected and highly-experienced real estate professional. I look forward finding the right property for your needs.
FAQ
Can I get another mortgage?
Yes. However it is best to seek the advice of a professional to determine if you should apply. A second mortgage is used to consolidate or fund home improvements.
What should you look for in an agent who is a mortgage lender?
People who aren't eligible for traditional mortgages can be helped by a mortgage broker. They shop around for the best deal and compare rates from various lenders. This service may be charged by some brokers. Other brokers offer no-cost services.
Can I afford a downpayment to buy a house?
Yes! Yes. There are programs that will allow those with small cash reserves to purchase a home. These programs include government-backed mortgages (FHA), VA loans and USDA loans. Visit our website for more information.
How much money do I need to save before buying a home?
It all depends on how long your plan to stay there. You should start saving now if you plan to stay at least five years. You don't have too much to worry about if you plan on moving in the next two years.
What is reverse mortgage?
A reverse mortgage allows you to borrow money from your house without having to sell any of the equity. It works by allowing you to draw down funds from your home equity while still living there. There are two types: government-insured and conventional. Conventional reverse mortgages require you to repay the loan amount plus an origination charge. FHA insurance will cover the repayment.
Statistics
- This means that all of your housing-related expenses each month do not exceed 43% of your monthly income. (fortunebuilders.com)
- The FHA sets its desirable debt-to-income ratio at 43%. (fortunebuilders.com)
- Over the past year, mortgage rates have hovered between 3.9 and 4.5 percent—a less significant increase. (fortunebuilders.com)
- Private mortgage insurance may be required for conventional loans when the borrower puts less than 20% down.4 FHA loans are mortgage loans issued by private lenders and backed by the federal government. (investopedia.com)
- When it came to buying a home in 2015, experts predicted that mortgage rates would surpass five percent, yet interest rates remained below four percent. (fortunebuilders.com)
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How To
How to find houses to rent
Moving to a new area is not easy. But finding the right house can take some time. Many factors affect your decision-making process when choosing a home. These factors include the location, size, number and amenities of the rooms, as well as price range.
You should start looking at properties early to make sure that you get the best price. Ask your family and friends for recommendations. This will ensure that you have many options.