Jacqueline Beardsley

Did Buyer Breach Exclusive agreement?

Question: I have an exclusive buyer brokerage agreement with my buyer client and have been diligently working with him for quite some time.  The buyer has suddenly stopped returning my calls and texts.  I have now learned that he is under contract to purchase a home and is working with a new agent from another brokerage.  What can I do?

Answer: First, review the exclusive buyer brokerage agreement that you have between your brokerage and the buyer.  It can provide a contractual basis for payment by your buyer client for whom you are providing or have provided, valuable services.

You will need to determine if the buyer has breached that agreement with your brokerage.  You and your designated managing broker might want to consult the brokerages' legal counsel to discuss the situation and review the terms of the exclusive buyer brokerage agreement.  The brokerage's legal counsel could then advise as to the brokerage's options versus the buyer as it relates to their potential breach of the brokerage agreement.  Your brokerage will then make a business decision as to whether it wishes to seek enforcement of the agreement against this buyer who appears to have gone rogue.

Another option to consider would be to file for arbitration under Article 17 of the Code of Ethics on the question of procuring cause.  A hearing panel would need to consider both sides of the argument to determine who best fits within the definition of procuring cause.

NAR has produce a 17-questions "Arbitration Worksheet" that you might review.  This worksheet contains pertinent questions and factors that a hearing panel would consider in such a dispute.  The existence of an exclusive buyer brokerage agreement will be one factor in an arbitration panels consideration of a procuring cause argument, and while it may not be a deciding factor, it could be a factor in your favor.

If you find yourself in a commission dispute or a contractual dispute with your client, you should visit with your managing broker and perhaps your brokerage's legal counsel for advice on how best to proceed.

The above article was written by Victoria Munson and published on September 3, 2025.

Procuring cause is a chain of events that lead to a sale of a property.  An example of this would be if an agent was working with a client and has met with them, consulted with them as to the criteria they are looking for in a home and then starts the process of presenting homes to their client that meets their criteria and views the homes with them.  If that client later on goes to another agent to write an offer on that home and they buy the home, the first agent may be able to show procuring cause and be compensated.

Charles Rutenberg Realty
Naperville IL

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