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REAL ETHICS by Steve Stazel | October 2009 | Index of all Real Ethics columns
A few comments on procuring cause
Too many times, I hear REALTORS® claim to have lost an arbitration when a friend of theirs won a dispute and both situations were the same. Let me ask a question:
Have you ever been involved in the same identical transaction twice?
The answer is obviously no. That is because our transactions consist of many “chunks.” One transaction has four big chunks, eight medium chunks, and twelve small chunks. The next transaction has six big chunks, ten medium chunks and four small chunks. The next transaction has three big chunks, eighteen medium chunks, and seven large chunks.
Do not ever think that because one of the chunks in your transaction is the same as one of the chunks in another transaction that the decision of the arbitration panel will be identical in both cases. Did you have all of the other chunks in your transaction? Did you have additional chunks?
As many of you know, there is a proper definition of procuring cause. That definition is “Procuring cause is whatever the arbitration says it is.” That may sound flippant, but it is not. The arbitration panel looks at all of the chunks in each contested transaction in order to reach a decision. In different situations, the same chunk may be given different consideration in making a decision.
Let me offer a suggestion that might keep you out of arbitration. Whenever you become aware of a potential conflict with another broker, TALK WITH THE OTHER BROKER. Do not be hesitant to pick up the phone and try to work out an equitable commission agreement.
That phone call could save you time and your relationship with the other broker. It is possible that one of the “chunks” mentioned above might be the attempt that was made to reach a solution early in the transaction.
Each month, the Aurora Outlook features RealEthics, a column by Steve Stazel devoted to explaining Code of Ethics issues for members. The comments stated in this article are those of the author and do not necessarily represent the views of the National Association of REALTORS®, the Colorado Association of REALTORS® or the Aurora Association of REALTORS®. Ultimately, a hearing panel of the Professional Standards Committee determines whether a violation of the Code of Ethics has occurred on a case-by-case basis. These comments should not serve as the foundation of any ethics complaint, arbitration request or response.
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 REALTORSŪ.
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