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Dimitry Esquire
Dimitry Esquire, Attorney
Category: Real Estate Law
Satisfied Customers: 41221
Experience:  JA Mentor, multiple jurisdictions, specialize in business/contract disputes, estate creation & admin
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I am an Indiana managing broker, and I have a question about

Customer Question

I am an Indiana managing broker, and I have a question about procuring cause. An agent from another company showed her clients a new home after registering them with the builder. The clients never made an offer, and decided to use another in my office. The clients contacted the first agent to tell her they were no longer using her, but that the new agent would pay her 25% of the commission on any home she had shown them. The first agent agreed. My agent then showed the clients several properties, but ultimately the clients made an offer on the new home that the first agent showed them. My agent has worked with the builder and his assistant on behalf of the clients, including 30-40 phone conversations, and will continue to do so through to closing. Now the broker for the first agent is claiming that the entire commission belongs him (or the first agent) because she was the one who registered the client with the builder, and showed them the property first. Who was the procuring cause?
Submitted: 2 years ago.
Category: Real Estate Law
Expert:  Dimitry Esquire replied 2 years ago.
Thank you for your question. Please permit me to assist you with your concerns. As you know, procuring cause is not really clear-cut. What the law requires is generally more than simply showing the property, but it requires that the broker or salesperson must have ignited some sort of an interest or desire in the buyer that ultimately led to the purchase. Since the home was shown and they did return later for the same property, arguably the agent from the other company is that procuring cause here. I realize that this is likely not what you hoped to hear, but unless that 25% of the commission agreement is in writing, the first broker appears entitled to the commission. Sincerely, ***** *****

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