The Law of Procuring Cause – Introduction
Posted on: July 2, 2012
BROKER’S COMMISSIONS AND PROCURING CAUSE
A real estate broker is entitled to a commission if there is a brokerage agreement or if the broker is the “procuring cause.” Procuring cause is a method to entitle a broker to a commission if certain conditions are fulfilled. See Allenby & Associates, Inc. v. Crown St. Vincent, Ltd., 8 So. 3d 1211, 1212 (Fla. 4th DCA 2009).
The first condition is that the broker must bring the buyer and seller together. The broker must begin negotiations with the potential buyer. The seller must know that the broker has begun the negotiations. See Dawson v. Hadden, 743 So. 2d 1230, 1232 (Fla. 5th DCA 1999).
The second condition is that the buyer and seller must come to a meeting of the minds regarding the sale of the property. Id. The broker’s introduction of the parties must be the source of that meeting of the minds.
If you are a broker who is being denied a commission for the sale of real property or if you believe that a broker is improperly seeking a commission, call one of our South Florida real estate litigation attorneys today at (954) 779-7009.