Procuring Cause - How Best to Protect Yourself

Incorporate these best practices into your day-to-day business interactions:

• Ask customers if they’re already working with an agent.
• Discuss agency with potential clients and then ask them to sign an Agency Disclosure. If there is an arbitration or mediation session regarding Procuring Cause, the panel may automatically deem that procuring cause did NOT take place if you do not have paperwork which is required by law, including an Agency Disclosure.
• Encourage prospective clients to sign exclusive right-to-sell and right-to-buy agreements with you. Be sure to stress the benefits of these agreements over other agreements.
• Make sure you’re the gatekeeper. Ask buyer clients to send you information about any homes they come across that interest them, and you’ll arrange showings, which you’ll conduct with them. Ask seller clients to direct any potential buyer inquiries to you. Preempt the potential for clients to act alone.
• Ask buyer clients to hand out your business card to listing agents when they visit open houses without you. If they sign a guest book at an open house, ask them to note your name, as well. Ask seller clients to hand out your card when potential buyers or buyer’s agents approach them.
• When you’re hosting an open house for a listing, ask all visitors if they’re represented.
• Communicate regularly with your clients. Return their phone calls, texts, and emails as soon as possible. And communicate professionally with the other party’s agent, as well.
• Keep clear and thorough documentation of appointments, showings, meetings, and communications.
• Communicate and present all offers and counter-offers promptly.
• Maintain an active and open line of communication once an offer is accepted and a transaction begins to move toward closing.

Make sure everyone involved or potentially involved in a transaction is clear on whom you represent in order to avoid misunderstandings. Further, perform your duties to your clients—buyers or sellers—in such a way that there’s no possible question of whether or not you earned your commission. Taking care of business clearly, openly, and professionally is key to avoiding disputes.