Expert: Jessica Bryan - 2/16/2011

Question
We looked at a home last summer (June 2010) with an agent, but choose not pursue the house at that time.  We decide to rent and are now getting ready to look at houses again with a different realtor.  We would like to look at a home that we looked at in June 2010 and is still on the market (it was off for a short time. Would the old Realtor be entitled to compensation if we buy the home we looked at in June 2010?

Answer
Hi Christine;
Procuring cause is often a challenge.  It would be difficult for the first agent to prove that they are the procuring cause for the purchase of a home they showed many months ago.  However (in fact) they are the procuring cause!  They were the ones that showed it to you and unless the new real estate agent did or said something that would make you want to revisit it, the other agent might come after you or the agent for the commission.  If your new agent did something that would make you want to revisit the home then there would be a reason for the new agent to be entitled to the commission.  But you said you wanted to look at the home again so obviously your exposure to the home (and interest) was sparked by your first agent. Was there a reason that you didn't contact your first agent to look at homes again?  If the agent didn't follow up with you or do their job well, then there are extenuating circumstances that can be challenged.  This is one of the issues that we (in Professional Standards Hearing panels) often use in practice.  Our ethics updates often include similar scenarios.  There is no absolute answer and often we find that procuring cause is unclear due to the fact that there can be lots of extenuating circumstances.

Best of luck,
Jessica Bryan