Home Buying in Hoboken>Question Details

Amanda, Home Buyer in hobo

if one realtor shows and apartment but you buy it from a different realtor who gets the comission?

Asked by Amanda, hobo Sat Nov 24, 2007

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If the agent that originally showed the property asked the client if they were represented by another agents, provided an agency disclosure prior to showing, the showing agent may have the ability to secure a commission due to procuring cause. If the client signed a buyer representation agreement and agency disclosure prior to showing then they would have an even better chance....may have, Simply showing a property to a potential buyer means absolutely nothing. Other events must have happened during the process in order to claim procuring cause.
2 votes Thank Flag Link Sat Nov 24, 2007
What are the circumstances that one agent showed you the property and another agent helped you buy it? Sometimes that make a difference. The agent who was the procurring cause is entitled to the commission. In the best case scenario, the agent who writes up the contract will give the agent who showed the property a referral as a means of good faith. Tell us more about your situation. It sounds like there may be a little more to it than we can get from this post. Is there an issue between the 2 realtors?
1 vote Thank Flag Link Sat Nov 24, 2007
Usually, the original Realtor who showed the property is entitled to the commission. However, that isn't always true and nothing is set in stone. If the original Realtor is also the listing agent, a dual agency situation develops, and you are required to give permission for the listing agent to represent both you and the seller. If you didn't give that permission, you are free to go out and get your own representation for the purchase. Sometimes the buyers agent will pay a referral fee in a declined dual agency.

It can get quite messy if the the agent who showed you the property is what is known as the "procuring cause" of the sale. Procuring cause means the agent who showed you the property was a "big reason" for you becoming involved with that property. For example, he sent you the listing. Or you were aware of the property through his efforts. If that is the case, he is entitled to at least a portion of, if not all, the commission. It's only fair in that case, correct?

On the other hand, if you were already working with an agent and just happened to stroll through an open house, the situation can get a bit tense. But usually the brokers of the firms involved can arrive at an amicable solution that usually involves some kind of split.

The bottom line is the concept of "procuring cause". Here is a link with more information:

http://www.homebuying.about.com/od/realestateagents/qt/Procu…
Web Reference: http://www.marcpaolella.com
1 vote Thank Flag Link Sat Nov 24, 2007
Why would you buy from a different Realtor? Where was your Realtor while the first Realtor was working for free?
Web Reference: http://www.cindihagley.com
0 votes Thank Flag Link Sat Nov 24, 2007
The Hagley G…, Real Estate Pro in Pleasanton, CA
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It really depends, Amanda. Did you sign any agreements with a realtor? When you say "buy it" from a different realtor, is that different realtor the listing agent? Without more info, we really can't answer your questions. So tell us the dirty details!
0 votes Thank Flag Link Sat Nov 24, 2007
The agent who showed the unit.
0 votes Thank Flag Link Sat Nov 24, 2007
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