Procuring Cause Is Still a Factor

: Richard Montgomery on Sep 24, 2024

Dear Monty: If a real estate broker has given a prospective buyer information on paper only about a property for sale, and the prospective buyer has not stepped into the property, can the buyer go to a different agent if the buyer does not like the original broker?

Monty's Answer: It is unclear if you are the buyer, an agent or an adviser asking for one of the aforementioned. The answer will address you as the buyer. Generally speaking, whether a buyer can go to a different agent depends on several factors, including any agreements in place, local regulations and the specific circumstances of the interaction.

You have only received paper information and have not physically visited the property with the original broker. This limited interaction might weaken the original broker's claim to represent the buyer in the transaction. However, local customs and regulations vary, so you may want to check with the local real estate board for specific guidance. If you decide to work with a different agent, informing the original agent of this decision may help prevent a procuring cause issue.

Here are some questions to consider:

No. 1: Is there a formal agreement between you and the original broker? When a broker provides information about a property to a prospective buyer, there may not be a signed buyer's representation agreement. Without such an agreement, the buyer typically has no legal obligation to continue working with that broker.

No. 2: Did the original broker invest significant time and effort in researching and presenting property information to you? You did not state the reason for not liking the agent. Was the agent pushy? Did the agent make a statement you knew to be untrue? Do you have a relationship with a different agent? Do you not like the agent because another agent put you up to it? It's also worth considering whether the property information provided was publicly available or if it included proprietary insights from the original broker. Real estate agents that belong to the National Association of Realtors have a "procuring cause" rule that protects the agent responsible for the sale from another agent who feels entitled to the commission. If a procuring cause committee feels a different agent is responsible, the commission may be split differently, or it could all go to the first agent or be awarded to the second agent. You may be asked to submit a statement.

If you genuinely feel that the original broker is not a good fit for your needs, you may have the right to seek representation that better aligns with your preferences and goals.

For the new agent considering working with this buyer, it's important to inquire about any previous interactions with other brokers. Many agents will want to ensure they're not interfering with an existing agency relationship or benefiting unfairly from another broker's work. In some cases, if the original broker was the listing agent for the property in question, they might still be entitled to a commission even if the buyer chooses to work with a different agent. This would typically be outlined in the listing agreement between the seller and the original broker. There would be no procuring cause if the listing agent is not a member of the NAR.

Richard Montgomery is a syndicated columnist, published author, retired real estate executive, serial entrepreneur and the founder of DearMonty.com and PropBox, Inc. He provides consumers with options to real estate issues. Follow him on Twitter (X) @dearmonty or DearMonty.com.

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