2 Major Misconceptions by Real Estate agents with Respect to Procuring Cause

  1. Many agents believe that if they have a Contract for Exclusive Right to Represent Buyer or a Buyer Facilitator Services Contract and are involved in a commission dispute, they are automatically entitled to the cooperating compensation. That is not true. However, there may be offers of compensation only made to buyer brokers who are under contract. This would bar other procuring cause questions as there would be no other offers of compensation.
  2. Many agents believe that if their advertising attracted a buyer to a listed property and they are the agent who first shows the buyer the property, they are automatically entitled to the cooperating compensation. That is not true.

There two misconceptions arise out of real estate agents not understanding the fundamental elements of procuring cause as outlined above.

The Minnesota Association of REALTORS® is the largest professional trade association in the state with more than 17,000 members who are active in all aspects of the real estate industry.

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