Does Procuring Cause come into play when there is no commission or at all?
656I am a homeowner and agent and I posted my home on Zillow a few months ago. Two years ago I had a buyer under contract with another agent for the house, but the deal fell out. The buyer called me directly because they saw the house priced much lower and asked if they could buy it, that the deal fell out because of their realtor who they didn't like. They no longer have a contract with the agent but did end up buying a different house using him. Does the former realtor have a case to claim commission if I sell these people my house? Is there a statute of limitations? They told me they want to buy the house directly from me. What if anything has been your experience with procuring cause?
Addtional Details:
- Home was originally listed on the MLS offering 3% commission in 2016 - Jan 24, 2019
3 answer(s)
About 5 years ago
Procuring case can be tricky. First I would discuss this with your current broker for insight. Ultimately it affects them and you certainly want your transaction to be covered under your E&O Policy I would assume. Then speak with an attorney. It is my personal opinion and I would have to consult with my broker but I do not believe any agreements would still be in force or affect two years after the fact.
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DislikeAbout 5 years ago
I agree, advice from a real estate attorney would be best practice however I could give you some hypothetical answers. If this happened 2 years ago, pretty much any contract between those buyers and their agent are long since over. If you had an agreement with that agent to pay a commission (if you were selling the home unrepresented) that agreement is also most likely long gone. These agreements have expiration dates. Also, if those buyers purchased a home 2 years ago with the same agent, that agreement has likely been fulfilled. Lastly, if the buyers had an agreement with the agent to represent them and for some reason it was still in effect for those buyers, unless you have some type of written agreement with them, the buyers would be liable for any commissions owed.
About 5 years ago
Sounds complicated and confusing. When in doubt seek the advice of a real estate lawyer. That what I’d do. It will give you the peace of mind you need to move forward. Best.
Disclaimer: Answers provided are just opinions and should not be accepted as advice.
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