What is the purpose of procuring cause?
The “procuring cause” of a real estate transaction is the agent whose actions and efforts result in the sale of a property. It’s the agent who ultimately caused the buyer to purchase the home. As such, that agent is entitled to compensation in the form of a commission.
What is procuring cause in Florida real estate?
The procuring cause doctrine, under Florida law, provides that a real estate broker is entitled to a commission when he/she produces a purchaser that is “ready, able and willing to perform upon the terms fixed.” Procuring cause applies in commercial and residential real estate contexts, and even to brokered sales …
What is a procuring cause protection period?
To protect brokers in this instance, most listing agreements have what is known as a “broker protection clause,” also known as an “extension clause” or “tail provision.” The broker protection clause provides that if the owner contracts to sell the property with a buyer who was procured by the broker within a specified …
What is the threshold rule in real estate?
The threshold rule- the REALTOR that takes the buyer into the home has procuring cause; there is no threshold rule. The buyer agency agreement- The REALTOR who has a buyer’s agency agreement has procuring cause; procuring cause is property-specific not agent-specific.
What is another name for an offer to purchase?
An offer to purchase is often called a purchase agreement, purchase contract, a sale agreement, or a purchase and sale agreement, depending on where you live and what type of property you’re buying.
Which agent obtains the offer?
The seller and any broker(s)/agent(s) involved are to participate in the disclosures. If more than one broker/agent is involved, the broker/agent obtaining the offer is to deliver the disclosures to the prospective buyer unless the seller instructs otherwise.
What is a protection period in real estate?
A safety protection clause in a listing agreement entitles the real estate broker or agent to a commission after the listing expires or is canceled. … The broker must send notice to the seller with each buyer’s name within a certain number of days after the house is off the market in order for the clause to apply.
What is the legal doctrine of procuring cause?
Under the procuring cause doctrine, a sales representative earns commissions on a sale finalized after his or her termination as long as the employee originally “procured” the sale.
Can real estate commissions be paid to an LLC in Florida?
Sales associates and broker associates are only able to collect their compensation for real estate services through their broker, either directly/individually or through a PA, LLC or PLLC in their licensed name only. (see 475.161, Florida Statutes).
How does a Realtor inform the board he or she does not wish to arbitrate?
How does a REALTOR® inform the Board he or she does not wish to arbitrate? A REALTOR® must advise the Board in writing that they choose not to arbitrate before the Board. … REALTORS® must: advise potential clients of the potential for additional compensation from other brokers.
What is the secret to a fast sale of a property?
The secret to a fast sale is: a seller might have to lower the price of the property.
Is a Habendum clause required?
Many states, such as Pennsylvania, require a deed to have a habendum clause in order for the deed to be officially recorded and recognized by the Recorder of Deeds. Habendum clauses are also found in leases, particularly oil and gas leases. The habendum clause can define how long the interest granted will extend.
Can a broker guarantee the performance of service providers?
The offer will state if brokers refer buyer and seller to persons, vendors or service providers, that brokers do not guarantee the performance of any providers. Buyer and Sellers may select providers of their own choosing.