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June 11.2025
3 Minutes Read

The Untold Truth: Why Procuring Cause Remains Relevant for Real Estate Agents

Procuring Cause in Real Estate conference discussion at a meeting.

The Resilience of Procuring Cause in Real Estate Transactions

Despite recent changes in the National Association of Realtors (NAR) regulations due to a significant antitrust settlement, the principle of procuring cause remains a critical component in determining broker compensation. Matt Troiani, NAR’s senior counsel, made this clear during a recent forum, asserting that rumors of procuring cause's demise are greatly exaggerated. This legal framework continues to influence how commissions are allocated and plays a vital role in arbitrations concerning compensation disputes.

Understanding Procuring Cause: Historical Significance

Procuring cause has long been embedded in the fabric of real estate law, with definitions tracing back to various states’ legal systems. Black’s Law Dictionary defines it as the broker's efforts being foundational to negotiations leading to a sale. Its roots precede even the Code of Ethics established by NAR, demonstrating its historical importance in real estate transactions. Despite modifications in commission structures post-settlement, this principle is unlikely to be rendered obsolete anytime soon.

The Impact of the Antitrust Settlement on Real Estate Practices

The antitrust settlement mandates changes that affect how buyers and brokers engage—particularly regarding compensation agreements. Now, buyers must determine how much they will pay their agents before viewing listings. However, this does not eliminate the possibility for listing brokers to offer commissions outside of the Multiple Listing Service. The market's reaction to these changes will undoubtedly vary, with some areas adapting faster than others.

Potential Challenges and Opportunities for Real Estate Agents

As the real estate landscape evolves, agents must navigate newfound challenges such as non-exclusive agreements and overlapping exclusive contracts with buyers. This can lead to disputes that re-invigorate discussions around procuring cause. Agents might find themselves in positions where they have to protect their rights and navigate arbitrations for commissions, reflecting the ongoing relevance of the procuring cause concept.

What Real Estate Agents Need to Know

Real estate agents should stay informed about procuring cause and the implications of the recent settlement. As compensation structures evolve, understanding the nuances of these changes can help agents advocate for their commissions more effectively. The need for clear agreements with buyers and strategies to protect their interests in arbitrations will be crucial moving forward.

Engaging Stakeholders: The Role of NAR Moving Forward

Moving ahead, NAR is poised to offer continued guidance regarding the interplay of compensation offers and procuring cause. The organization recognizes the challenges real estate professionals face and remains committed to assisting brokers in navigating these complexities. As discussions continue around how procuring cause operates alongside new compensation norms, active participation in meetings and forums can provide agents with vital insights.

While procuring cause may see fewer instances in arbitration due to the recent changes, it remains a concept of fundamental importance. As agents adapt to the new rules set forth by the NAR settlement, understanding this principle can provide both a safeguard and a strategic advantage in an increasingly competitive market.

For real estate agents keen on ensuring their business thrives in this complex landscape, understanding these evolving dynamics is essential. As you prepare to engage with clients in this new era of real estate, equip yourself with knowledge of procuring cause and leverage it to your advantage.

Take Charge of Your Real Estate Career

Join industry leaders and engage in opportunities that can propel your career forward. Participate in workshops and discussions to stay informed and refine your strategies in the changing landscape of real estate. Investing in yourself is the key to thriving in this dynamic environment!

Real Estate Agents

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