Nadel & Ciarlo, P.C.

How do I avoid commission disputes when buying a home?

If you are in the process of buying a home in the state of New York, you will want to make the best possible choice with respect to recruiting a real estate agent. Many buyers falsely assume that only the seller of the home needs to pay commission. It is important that you are not naive regarding this issue, since it is becoming increasingly common for home buyers to commit to paying a share of the commission.

Disputes can arise regarding the commission payments when the buyer does not agree on the conditions of payment. Additionally, they may not believe that a particular real estate agent deserves to gain commission for the deal, because they were not the person who originally introduced them to the property.

What does the term "procuring cause" mean?

Procuring cause refers to the real estate agent that was essentially responsible for securing the deal. A procuring cause agent would typically be entitled to the commission, because they were responsible for the success of the process. However, disputes can arise in regard to which agent was successful in making the purchase possible.

How can I avoid disputes regarding procuring cause of commission?

The most important thing you can do to avoid a dispute is to be transparent and honest. You should tell a realtor if you are working with another agent so that their roles are clear and their work does not overlap. You should also make sure that you sign an agency disclosure so that you are clear about roles and responsibilities.

It is important to understand how real estate litigation can help you in the case of a procuring cause dispute.

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