Procuring Cause Agreements: What Realtors Need to Know
When it comes to buying and selling real estate, there are a lot of things that can go wrong. One of the most common issues that arises is the question of who is entitled to the commission. This is where procuring cause agreements come into play.
What is a Procuring Cause Agreement?
A procuring cause agreement is a written agreement between realtors that outlines who is entitled to the commission in the event that a sale is made. The agreement typically lays out the terms of the agreement, including the amount of the commission and the circumstances under which it will be paid.
Why are Procuring Cause Agreements Important?
Procuring cause agreements are important because they clarify the relationship between realtors in a real estate transaction. Without a procuring cause agreement, there can be confusion about who is responsible for getting the sale done and who is entitled to the commission.
In addition, procuring cause agreements help to reduce the risk of litigation. When everyone is clear about their roles and responsibilities, there is less chance that disputes will arise over commissions.
What Should be Included in a Procuring Cause Agreement?
A procuring cause agreement should include a few key elements. First and foremost, it should clearly state the name of the realtors involved in the agreement. It should also specify the property that the agreement applies to.
The agreement should outline the terms of the commission, including the amount and the circumstances under which it will be paid. The agreement should also address any contingencies that might arise, such as the potential for a sale to fall through.
Finally, the procuring cause agreement should include a signature line for each realtor involved in the agreement. This helps to ensure that everyone has read and agrees to the terms of the agreement.
Procuring cause agreements are an important part of the real estate industry. They help to clarify the roles and responsibilities of realtors and reduce the risk of disputes over commissions. If you`re a realtor, be sure to include procuring cause agreements in your arsenal of tools to ensure your transactions go smoothly.