Procuring Cause Law and Legal Definition

In the context of a real estate transaction, procuring cause refers to actions that begin or set in motion a serious of events that lead to the final sale of a property. Under some state laws, which vary by state, a real estate broker may be entitled to a commission as a procuring cause of a sale if the broker brought the purchaser and seller together and brought about a sale through continuous negotiations initiated by him, unless the seller and buyer intentionally exclude the broker.

Typically, for the broker to be entitled to the commission, it must bring together the seller and purchaser, and not just a person associated with the seller or purchaser. The broker must often be involved in the negotiations between the buyer and seller to be entitled to a commission. The mere act of informing a potential purchaser, who eventually purchases the property, about a prospective purchase may not be enough for the broker to be a procuring cause in the sale. The precise definition depends on state law and the facts and circumstances in each case.