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 …
Is showing a house 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 does procuring mean in real estate?
A procuring cause in real estate transactions refers to
the real estate agent or broker whose actions resulted in the sale
. As a result of their actions, that real estate professional is compensated with a commission from the property sale.
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 a procurement fee in real estate?
The “procurement fee” is
the compensation to be paid to the broker representing the tenant
. The commission which the owner agrees to pay the listing broker (broker representing the landlord), minus the procurement fee, is the amount which the listing broker receives.
How do I stop procuring cause?
- Be Honest About Working With Other Agents. It’s important to let your agent know if you’re working with another agent. …
- Sign A Buyer-Broker Agreement. A buyer-broker agreement solidifies a working relationship between a buyer and an agent or broker. …
- Follow Open House Protocol.
What is the threshold rule in real estate?
Therefore
the privilege of automatic procuring cause is not granted to the firm and its agent who drafts the offer or the firm and its agent who first shows the property
, commonly called the threshold rule. There are no actions that in and of themselves preclude a firm from being procuring cause.
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 a protection clause 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 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.
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.
How is procurement best defined?
Procurement is the
act of obtaining goods or services
, typically for business purposes. Procurement is most commonly associated with businesses because companies need to solicit services or purchase goods, usually on a relatively large scale.
How can procurement cost be reduced?
- Negotiation. Negotiate better terms with current suppliers, focusing on lower prices. …
- Tender process. …
- Bundling. …
- Optimize specifications. …
- Reduce consumption. …
- Redefine the supply chain. …
- Insourcing / outsourcing (make-or-buy decisions) …
- Strategic partnerships.
What are procurement expenses?
Procurement Costs means
the amount paid or payable in respect of salaries, bonuses and benefits
in connection with the employment by the Company of the Procurement Personnel and the monthly license fee paid in respect of the Procurement Software.
