Ethics Case – Procuring Cause

justice p


As I always have done in the final portion of my seminars, FACTS TO LIVE BY, one of them is : Expect the Unexpected ( whether it’s positive or negative ), I have to go thru one and this will be the 1st in my 30 years of practice.

In this case, just yesterday, after a 4 month negotiation, a property owner ( Corporation ) refused to acknowledge my company as the listing broker after so much proof on meetings, emails, acknowledgment receipts and even a video recording of our meeting.

Our company was prudent enough from the beginning to ask if they were entertaining licensed brokers and we were even given flyers of other properties they are selling showing that they are entertaining licensed brokers, now that the deal is about to close, they are claiming that they never signed an Authority to Lease ( we just got a received unsigned copy ) and that the Professional Fees will be for the account of the Lessee.

As per our lawyers whom I consulted last night, ” Procuring Cause” is a major factor in this upcoming case.  Unfortunately most of the negotiation done with this transaction was with the Corporation’s property administrator.

Professional fees disputes boil down to what is referred to in the industry as “procuring cause.” The Licensed Broker / Practioner who ultimately caused the Client to purchase or lease the property and earn the Professional Fee for services rendered is generally the procuring cause individual ( Broker / Practioner ).

On a final note, I spoke to the Lessee and guaranteed them that I won’t be a hindrance for the transaction to close as the objective has to be met which is for them to lease the property and this took sometime, complex negotiation and resilient effort of everyone concerned in making this deal happen.  The Lessee in return will assure my company in writing that they are honoring me as the listing broker and the “Procuring Cause” of this transaction.

We all have to be vigilant and rid ourselves of this kind of Property Owners whether they are Individual Owners or Corporation for the good of everyone. Frankly, I have better things to do and such wasted negative energy but in the interest of all licensed practitioners including my company, this has to be addressed,  corrected and be judged rightfully.


After our initial letter stating the merit of our case, the Property Owner honored my firm as the Listing Broker and agreed to the terms and conditions we initially stated.  It’s always good when an amicable settlement is reached by both parties.

Visit for blogs, news, case studies, updated rulings and property listings which you may find informative.

We are currently migrating all posts to which will be the main website and will advise you when ready.

Subscribe to my daily postings by filling in your email address at the SUBSCRIBE section located at the mid right hand portion of the webpage of

View properties you are looking for by using the SEARCH engine ( highlighted in Green on the right hand corner of the webpage ).

Finally, should you have a property for SALE or LEASE, let me know if our office could be of assistance.

Thank you.

Robert G. Sarmiento Properties
Professional Affiliation :
Philippine Association of Real Estate Boards
Member, City of Taguig Real Estate Board 2016 – 2017
Real Estate Broker’s Association of the Philippines 2000-2015
President, Greenhills Chapter 2008, 2009
Philippine Association of Real Estate Brokers
San Juan Mandaluyong Chapter 1998, 1999
PRC # 6569
02 5148481 ( direct line )
+ 632 5536051 ( trunkline )
+ 632 4781316 ( telefax )
+ 632 8561365 ( line 3 )
+ 632 8041701 ( line 4 )
+ 63 917 5364829 ( globe )
Email : [email protected]
Website :


Leave a Reply

Compare listings