Procuring Cause: "It's One Date and You're Married"

Commissiondectomy... Did you read the Wall Street Journal article about a Nantucket Island broker suing for a $300,000 commission? ("When Realtors Fight About Commissions, Things Can Get Ugly," Dec 20, 2005) It provides a provocative look at the concept of a "procuring cause."

As an ex-broker, I always thought that that the procuring cause was the person who first brought a real estate sale idea to a buyer. Pretty straightforward. As one broker says in the article, "It's one date and you're married."

But apparently it's not that simple, at least in Massachusetts. The broker, J. Craig Hawkins, showed a 25-acre $15.5 waterfront property (listed with a 4% commission) to a wealthy philanthropist, Catherine R. Clifton. According to his affidavit, he actually carried "her on his back through a field of poison ivy so she could enjoy a particular view."

Further, "He recalled dispatching, on an unspecified date, detailed information about the property, including photos and a map, to the Cliftons via a Federal Express package sent to a room at the Four Seasons Hotel in Philadelphia," where she and her husband stayed while their home was remodeled.

In her affidavit, "Mrs. Clifton denied that she dropped Mr. Hawkins in an effort to reduce the purchase price by freezing out the agent. ... Mrs. Clifton said she wanted to make the offer through her Boston attorney, David Gilbert, because he could provide 'unbiased advice.' Mr. Gilbert was paid by the hour, regardless of whether the sale occurred, Mrs. Clifton said, and so his negotiations 'were not motivated by any personal stake in earning a commission.'" Uh-oh.

So how do you define "procuring cause" in your market? What do you do to protect yourself? Have you ever had to resort to legal action?

-- Peter Pike