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Exclusion from Negotiations and Procuring Cause

Posted on: July 9, 2012

A broker who is the procuring cause is entitled to a commission.  A seller and buyer may not deny the broker’s status as procuring cause by excluding the broker from negotiations. 

In order for the broker to be the procuring cause, the buyer and seller must come to a meeting of the minds regarding the transfer of property.  The meeting of the minds must be the result of continuous negotiations.  The continuous negotiations must be “conducted and orchestrated by the broker.”  See Osheroff v. Rauch Weaver Millsaps & Co., 882 So. 2d 503, 505 (Fla. 4th DCA 2004).

The broker is required to conduct and orchestrate negotiations unless “the seller and buyer intentionally exclude the broker from the negotiations.”  See Rotemi Realty, Inc. v. Act Realty Co., Inc., 911 So. 2d 1181, 1189 (Fla. 2005); Siegel v. Landquest, Inc., 761 So. 2d 415, 417 (Fla. 5th DCA 2000).  If the broker is excluded from negotiations, then the broker is entitled to a commission, regardless of whether the broker continued to conduct negotiations. 

If you are a broker who has been excluded from negotiations or if you are a seller who is being accused of excluding a broker, call one of our South Florida real estate litigation attorneys today at (954) 779-7009.