Real Estate Agent Commission Disputes: Influenced by Experience or Procuring Cause Law?

Abstract

The purpose of this study was to examine the relationship among Procuring Cause Law, real estate agent years of experience, and real estate commission disputes. A pilot survey was conducted in the southwestern United States among real estate agents, realtor(s), and brokers. After testing the hypothesis, the decision was made to fail to reject the hypothesis and conclude that real estate agent experience and not Procuring Cause Law produced favorable outcomes in disputes. As a result, the following recommendations were made: (a) Agency seller and buyer’s agreements should be used in each transaction to avoid disputes, (b) proper expectations and guidelines should be reviewed prior to starting any real estate transaction, (c) a checklist may assist in the assurance that all valuable information is reviewed, (d) agents could benefit from fully understanding Procuring Cause Law and sharing this information with their clients, (e) state and national regulatory requirements of the law could be modified for easier understanding and use, and (f) consumers who willfully violate the law could be subject to monetary penalties.