MI 3.0 hours Doing The Right Thing - The Code (elective) Course Syllabus
3.0 Elective Hours.
What is procuring cause?
Procuring cause is the standard by which REALTOR® to REALTOR® commission disputes are decided. The concept of procuring cause is determined by the factors specified by the NAR Professional Standards Committee. Procuring cause is a major source of disputes between brokers and subsequent arbitration requests received by the REALTOR® Association.
It logically follows that in virtually every real estate transaction there are several different contracts which come into play. It is the listing contract, between the seller and the listing broker, which sets the process of a real estate transaction in motion.
Next is the contract between the listing broker and cooperating brokers. While this may be created as a published offer through a multiple listing service, it need not be. This is a unilateral contract.
Obviously, the Purchase and Sale Agreement is yet another contract. It is submitted by the cooperating broker on behalf of the buyer (regardless of any agency or non-agency relationships with the buyer), for presentation to the seller by the listing broker.
Procuring cause is one of the most complex and misunderstood concepts confronting REALTORS® while the course of doing business. Considering the variety and extent of the contracts involved, it is easy to understand why procuring cause disputes are so complicated and difficult to assess.
Among the duties a REALTOR® agrees to in subscribing to the Code of Ethics is the obligation to arbitrate. This course explains the differences between mediation and arbitration as well as when each may be chosen to settle a dispute. Such disputes may include procuring cause or contracts.