Procuring cause is an important real estate term. It basically means that for us to receive compensation from the listing agent for helping you, we need to be able to prove that we are the reason you know about, and saw the property.

Specifically, we need to be able to prove that we have an unbroken chain of representing you through the process of you seeing various properties.

The reason this is very important is that when you go see properties on your own (at open houses, for example), you need to make sure you tell the listing agent that you're being represented by a real estate agent. If you don't notify the listing agent, he will think he can take both sides of the commission the seller is paying (it is usually split between the listing agent and us, the buyer's agent). If you neglect to tell the listing agent that you have a real estate firm representing you, he won't be very happy when I call him later in the process, because he'll then realize he's not going to make twice as much as he usually would on the transaction.

In fact, he might be so unhappy he was misled that he will pull the "procuring cause" card and say that our firm should not be compensated because it was he who showed you the property. Needless to say, it's never a pretty situation and can be easily avoided by you telling the listing agent that you have representation.

Sometimes buyers think that by going into a property on their own, they can save money over having an agent represent them. There are two very big reasons this thinking is very incorrect: #1) The seller pays the same fee to the listing agent either way. If you don't have a real estate agent, the listing agent makes twice as much, but the seller still pays the same fee. #2) The listing agent is a professional and will make sure you feel very comfortable with him. He will answer all your questions and be super helpful. The only problem is that he represents the seller, not you. It's like asking a car salesman for advice on how much you should pay for the car. So be smart and engage us early so we can negotiate on your behalf. The seller pays our fee anyway, so you might as well benefit from the representation.