Procuring cause is the legal standard determining which broker is entitled to commission when multiple brokers could claim it. The broker whose efforts directly led to the successful transaction typically has procuring cause.
Procuring cause disputes arise when multiple brokers have touched a deal (one introduced the property, another negotiated terms, a third showed it to the buyer first). Typical standard: continuous, un-interrupted effort connecting the broker's work to the successful close.
LA multifamily procuring cause issues occasionally arise in transactions involving buyer agents who saw properties with multiple brokers. Well-documented timelines and correspondence typically resolve disputes in the favor of the broker who actually moved the deal forward.
From the Sterman LA Multifamily Glossary — defined the way a broker with $1.41 billion across 254 closed transactions actually uses these terms.
Michael Sterman, Senior Managing Director Investments, Marcus & Millichap.
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