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April
2004 | Index of all Real Ethics columns
What is "procuring cause"?
This question has generated many heated discussions in the REALTOR® community.
The best definition I have ever heard of procuring cause (and you can quote me on this) is:
It's whatever the arbitration panel says it is.
You may think this is a frivolous statement, but
it's not and here's why: No two real estate transactions are ever identical. Have you ever been involved in two
identical transactions? Of course not.
Every transaction is composed of "chunks." One transaction
might have three big chunks, four medium chunks and eight small chunks. The next transaction might have two big ones,
four medium ones and three little ones. Never will you have a transaction with chunks identical to any previous transaction.
Here is where the beauty of our arbitration process comes into
play. Any arbitration hearing will be heard by a panel of experienced REALTORS®. These panel members have each been
involved in many real estate transactions. They know what the real world of real estate is all about. They also receive
yearly training. The panel members look at all aspects of the individual transaction (all of the chunks) and arrive at
as fair a decision as possible.
There is one problem with arbitration. The problem is that
someone has to lose (rarely does a panel split the award). If you are the loser in an arbitration dispute, you will
feel that the panel made the wrong decision, and you won't be happy with the process.
One way to avoid this win/lose situation is to mediate the
dispute. All boards now offer mediation to members who are involved in arbitration. Mediation allows both parties
to have a voice in constructing a solution to the problem. If both parties cannot agree on an acceptable solution
then arbitration proceeds. With mediation, both sides (with the assistance of a trained mediator) attempt to construct
a solution to the dispute. In mediation both parties have a say in the outcome. If it goes to arbitration the parties don't
make the decision, the arbitration panel does.
Each month, the Aurora
Association of REALTORS® Web site features Real Ethics, a column by Steve Stazel devoted to explaining Code of
Ethics issues for members. A REALTOR® since 1974, Stazel is a Professional Standards instructor and senior Ethics
instructor for the Colorado Association of REALTORS®.
If you have an ethical concern or an issue you would like
to see addressed, please call Stazel at (303) 773-3333 or e-mail him at
stazels@msn.com. The comments of this article reflect the understanding and
opinions of the author and do not represent an official expression of policy by the National Association
of REALTORS®.
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