Procuring Cause
Procuring Cause is defined as “The uninterrupted chain of events that ultimately results in a sale;” and/or “The effort which brings about the desired result, as in producing the buyer for the listed property .”
The definitions appear simple enough to understand but, there are problems that home buyers must be made aware of in order to protect their rights.
“There is a potentially nasty problem out there, ready to trap them (Home Buyers), called Procuring Cause.
“Without changes to the current procuring cause guidelines and procedure, home buyers, will remain at a disadvantage if they do not have procuring cause explained to them as they begin their home search.”
“Just looking at a few homes with an agent can force a home buyer into a precarious financial situation which prevents them from seeking advice and counsel from an agent who can ultimately protect their interests in the transaction.”
1. Procuring Cause is a method used by home sellers to determine what or who motivated
you, the home buyer, to visit the sellers New or Resale “Homes for Sale” for the First
Time.
2. Basically, Procuring Cause determines which Real Estate professional receives a
commission (gets paid). Who you want to represent you is not even considered.
Therefore, proper Registration is a major consideration when deciding a Procuring
cause issue.
3. Avoid any direct contact with Realtors, real estate agents, builders, builder’s sales-
persons and model home hosts.
DON’T MAKE A VERY COSTLY MISTAKE
4. Whenever you look at homes you must remember that salespersons represent the New
Home Builder and the Resale Home Seller. They owe you no fiduciary duty. They are
not required to warn you will lose your right to Independent representation if you
register without your Home Buyer’s Agent being with you.
5. If you visit builder’s models, new home developments, new home developments, new
home subdivisions, new home sales offices, open houses, resale homes of private
individuals, or tour the Parade of Homes without your own personal Real Estate
Representative (Procured Home Buyer’s Broker) and provide the seller’s salesperson
with your name, address, and phone number, you become REGISTERED.
THE SIMPLE ACT OF REGISTERING COULD COST YOU
THOUSANDS
6. Typically, the seller’s salesperson will ask you to sign a registration form, a guest book
or even to enter a free drawing upon your FIRST VISIT to their “homes for sale” to
provide you were at the model or open house. Sellers do this as a means to establish
Procuring Cause. DO NOT SIGN ANYTHING – DO NOT GIVE ANYONE YOUR
NAME, ADDRESS, OR PHONE NUMBER.
7. New Home Builders could justifiably claim Procuring Cause and assert that their
advertising, marketing, location, reputation and/or participation in the Parade of Homes
caused you to visit their homes. If Procuring Cause is determined in their favor, they
would not be legally obligated to pay a commission to your “Home Buyer’s Agent.”
8. Resale Home salespersons could also justifiably claim Procuring Cause and assert that
yard sign, advertising and/or Open House caused you to visit the home or homes
the’ve listed for sale. Again, if Procuring Cause is determined in their favor,
they too would not be legally obligated to share a commission with your
“Home Buyer’s Agent.”
9. Unfortunately, NO COMMISSION = NO 50% OF COMMISSION GIFT.
VALUE OF GIFTS RANGE FROM $1,000 TO $25,000+
10. Why make a costly mistake that will give others the power to determine Procuring
Cause for you? You could very easily lose your GIFT. DO NOT REGISTER until
you have made an informed decision about real estate representation.
11. If you must look at homes alone, whether before or after you have your own Procured
Home Buyer Broker, YOU CAN ALWAYS SAY:
“My Home Buyer’s Broker told me about the property, explained
Procuring Cause and said I should ask if it would be alright to do
a walk through. I do not intend to register at this time, but I will
register when I have my agent with me.”
12. REMAIN ANONYMOUS AND DON’T SHARE ANY PERSONAL INFORMATION.
That way you will be protecting your right to REPRESENTATION from your own
KDR Procured Home Buyer Broker.
13. YOU CAN REGISTER and EVEN ENTER A SELLER’S FREE DRAWING WHEN
YOUR KDR PROCURED HOME BUYER’S AGENT IS WITH YOU.
There have been cases where there was representation but no compensation because of an improper registration. Neither you not your Home Buyer’s Broker wants that to happen, especially when your agent has agreed to give you a gift valued at 50% of his total commission
after closing.
CONTACT US IMMEDIATELY if you see any NEW or RESALE homes you like and we will, as your KDR Procured Home Buyer’s Broker, set up a time to register and view the homes with you .
1. Procuring Cause is a method used by home sellers to determine what or who motivated you, the home buyer, to visit the sellers New or Resale “Homes for Sale” for the First Time.
2. Basically, Procuring Cause determines which Real Estate professional receives a commission (gets paid). Who you want to represent you is not even considered. Therefore, proper Registration is a major consideration when deciding a Procuring cause issue.
3. Avoid any direct contact with Realtors, real estate agents, builders, builder’s sales- persons and model home hosts. DON’T MAKE A VERY COSTLY MISTAKE
4. Whenever you look at homes you must remember that salespersons represent the New Home Builder and the Resale Home Seller. They owe you no fiduciary duty. They are not required to warn you will lose your right to Independent representation if you register without your Home Buyer’s Agent being with you.
5. If you visit builder’s models, new home developments, new home developments, new home subdivisions, new home sales offices, open houses, resale homes of private individuals, or tour the Parade of Homes without your own personal Real Estate Representative (Procured Home Buyer’s Broker) and provide the seller’s salesperson with your name, address, and phone number, you become REGISTERED.
THE SIMPLE ACT OF REGISTERING COULD COST YOU
THOUSANDS
6. Typically, the seller’s salesperson will ask you to sign a registration form, a guest book or even to enter a free drawing upon your FIRST VISIT to their “homes for sale” to provide you were at the model or open house. Sellers do this as a means to establish Procuring Cause. DO NOT SIGN ANYTHING – DO NOT GIVE ANYONE YOUR NAME, ADDRESS, OR PHONE NUMBER.
7. New Home Builders could justifiably claim Procuring Cause and assert that their advertising, marketing, location, reputation and/or participation in the Parade of Homes caused you to visit their homes. If Procuring Cause is determined in their favor, they would not be legally obligated to pay a commission to your “Home Buyer’s Agent.”
8. Resale Home salespersons could also justifiably claim Procuring Cause and assert that yard sign, advertising and/or Open House caused you to visit the home or homes they’ve listed for sale. Again, if Procuring Cause is determined in their favor, they too would not be legally obligated to share a commission with your “Home Buyer’s Agent.”
9. Unfortunately, NO COMMISSION = NO 50% OF COMMISSION GIFT. VALUE OF GIFTS RANGE FROM $1,000 TO $25,000+
10. Why make a costly mistake that will give others the power to determine Procuring Cause for you? You could very easily lose your GIFT. DO NOT REGISTER until you have made an informed decision about real estate representation.
11. If you must look at homes alone, whether before or after you have your own Procured Home Buyer Broker, YOU CAN ALWAYS SAY:
“My Home Buyer’s Broker told me about the property, explained Procuring Cause and said I should ask if it would be alright to do a walk through. I do not intend to register at this time, but I will register when I have my agent with me.”
12. REMAIN ANONYMOUS AND DON’T SHARE ANY PERSONAL INFORMATION. That way you will be protecting your right to REPRESENTATION from your own KDR Procured Home Buyer Broker.
13. YOU CAN REGISTER and EVEN ENTER A SELLER’S FREE DRAWING WHEN YOUR KDR PROCURED HOME BUYER’S AGENT IS WITH YOU.
There have been cases where there was representation but no compensation because of an improper registration. Neither you not your Home Buyer’s Broker wants that to happen, especially when your agent has agreed to give you a gift valued at 50% of his total commission
after closing.
Contact us immediately if you see any new or resale homes you like and we will, as your KDR Procured Home Buyer’s Broker, set up a time to register and view the homes with you .