In the vibrant world of Jamaican real estate, commission disputes can happen, especially when multiple brokers are involved in a sale. The key question often boils down to: Who was the procuring cause of the sale? It sounds straightforward—whoever led the buyer to purchase the property gets the commission. However, it’s rarely that simple, and knowing the factors that establish procuring cause can help brokers avoid disputes and better serve their clients.
What Does Procuring Cause Mean?
Procuring cause refers to the chain of events set in motion by a broker that leads directly to a successful transaction. In the simplest terms, the broker whose actions started the process that ended in the sale is seen as the procuring cause. But here’s the catch: It’s not about just one action, like showing a property. The whole sequence of events and the broker’s role throughout the process is what counts.
Let’s Take a Look at a Scenario:
Imagine a buyer in Kingston is house hunting and reaches out to Broker Peter. Over several weeks, Peter shows her a number of properties, including a lovely villa in St. Andrew. The buyer loves the villa and returns with her family and even an inspector for a third visit. Everything seems to be moving forward with Peter, but then, out of nowhere, Broker Lisa swoops in. Lisa didn’t show the villa, but she writes up an offer on behalf of the buyer, which is accepted by the seller. Lisa then contacts Peter, offering him a 25% referral fee for his time.
Now, if you immediately think Peter is the procuring cause because he showed the house, you’re not alone—but it’s more complicated than that. Procuring cause involves many factors, like who maintained continuous contact, who guided the buyer through the decision-making process, and how Lisa got involved in the first place.
How Procuring Cause Disputes Arise
In Jamaica, most disputes over procuring cause happen when two cooperating brokers both feel entitled to the commission. One broker might have introduced the buyer to the property, while the other broker finalized the deal. Article 17 of the REALTOR® Code of Ethics requires brokers to submit procuring cause disputes to mediation and arbitration through the Real Estate Board of Jamaica. These cases are decided based on a thorough review of all relevant factors, including:
The relationship between the brokers and the buyer.
How each broker interacted with the buyer during the sale process.
Continuity of contact—did one broker drop the ball while the other took over?
No single factor will determine procuring cause. It’s the combination of actions and how they relate to each other that makes the difference.
Tips for Avoiding Procuring Cause Disputes
To keep things running smoothly and prevent commission disputes, here are some tips for brokers in Jamaica:
Clarify Client Relationships Early: Always ask potential buyers if they are working with another broker and whether they’ve signed any agreements.
Use a Buyer Brokerage Agreement: This can protect your relationship with the client and outline expectations clearly.
Stay Engaged: Keep communication lines open with your buyer. Log your interactions and maintain regular contact, especially if they show interest in a property.
Attend Open Houses with Clients: Whenever possible, attend open houses or property tours with your client and sign in as their broker.
Be Transparent if Another Broker is Involved: If a buyer shows interest in a property they initially viewed with another broker, ask them why they didn’t continue with that broker before proceeding.
When Disputes Happen
Even with the best preparation, disputes can still occur. When they do, it’s important to let the sale go through without interference. If one of the cooperating brokers believes they are the procuring cause, they can request mediation through the Real Estate Board. If that doesn’t resolve the issue, the case can be taken to arbitration.
Conclusion
Procuring cause disputes can be a headache in Jamaican real estate, but understanding the many factors involved can help you navigate these challenges effectively. By being proactive, transparent, and continuously engaged with your clients, you can reduce the likelihood of disputes and maintain strong, trusting relationships with buyers and sellers alike. When in doubt, always remember that mediation and arbitration are available to resolve these issues professionally.