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For nearly 30 years the Broker Co-op Guidelines has served as the ethical standard to establish procuring-cause between the Builder and REALTOR® in successful new-home transactions.

Why?

The biggest challenge Builders and Agents have is establishing procuring-cause, or does the Agent deserve the commission on the sale of the new home because the Agent caused the buyer to visit the Builder.

A buyer often shops the market without their Agent’s knowledge. Sometimes, the buyer forms a relationship with a Builder Representative, decides to purchase a new home and then calls their Agent to attend the contract appointment to represent them. Because the buyer never disclosed to the Builder Representative that they had Agent representation, the Builder Representative can only conclude that the agent is NOT the procuring-cause that brought the buyer to their new-home community and does not deserve the commission. Now, the agent is upset with the Builder and their client. To compound the issue, what if the Agent has a buyer’s agency contract with the buyer?

The simple solution the BRC crafted to establish procuring-cause, is for the Agent to accompany their client on their first visit to any new home community and register their buyer with the Builder Representative. This registration ties the Agent’s name to the buyer and establishes that the Agent brought the buyer to the community and deserves their commission.

Now days, many Builders help Agents establish procuring-cause by allowing Agents to register their buyers on the Builder’s website. Establishing procuring-cause is a key component to your being paid on successful new-built home transactions.

BRC Builder Members desire long-lasting business alliances with knowledgeable real estate professionals who understand how to make the new-home transaction easy for their clients.

Download A Copy – Ask Your Builder If They Comply With This Ethical Standard

BRC Coop Guidelines ’11