Cooperating Buyer Broker / Agent Policy

Terms & Conditions

Chad Holland Real Estate welcomes cooperation with licensed real estate brokers and agents. We believe professional cooperation between brokerages benefits our clients and helps facilitate successful transactions.

To ensure clear agency relationships, compliance with applicable law, and an orderly transaction, the following conditions apply to cooperating buyer brokers and agents seeking compensation from Chad Holland Real Estate:

1. Procuring Cause
   The cooperating broker must be the procuring cause of the successful transaction, when procuring cause is a condition of the applicable compensation agreement.

   Procuring cause generally refers to the broker whose efforts originate an uninterrupted series of events that result in the successful transaction. Procuring cause is determined from the facts and circumstances of the transaction and is not established solely by who first contacted the Listing Broker, first showed the property, wrote the offer, or holds a Buyer Representation Agreement.

2. Disclosure of Representation
   A cooperating broker or agent must timely disclose whom they represent in accordance with applicable Texas law and provide required agency disclosures.

3. Written Buyer Representation
   A broker or agent representing a prospective buyer must have the appropriate written Buyer Representation Agreement in place when required by Texas law, MLS rules, or REALTOR® requirements.

   Chad Holland Real Estate may request confirmation of the buyer’s representation status when coordinating a showing or transaction. Any disclosure of the specific terms of a buyer’s representation agreement remains subject to applicable law and the buyer’s authorization.

4. Showing Participation
   Cooperating brokers and agents are expected to accompany their buyers on the first showing, subsequent showings, and due-diligence inspections unless otherwise agreed in advance with Chad Holland Real Estate.

   An agent who does not participate in the showing or transaction should not assume that later obtaining a Buyer Representation Agreement, writing an offer, or otherwise becoming involved establishes procuring cause or an entitlement to compensation.

   Virtual and Video Showings
   Chad Holland Real Estate may provide existing photographs, videos, virtual tours, or other marketing materials to cooperating brokers and their clients when available.

   Chad Holland Real Estate listing agents are not obligated to conduct live or custom video showings on behalf of a buyer’s broker or agent. A cooperating broker requesting a virtual showing for their client is generally expected to conduct or participate in that showing and remain responsible for advising and communicating with their client.

   Requests for a Chad Holland Real Estate agent to conduct a live or custom video tour may be considered on a case-by-case basis when circumstances warrant and when approved by the Listing Agent. Any such accommodation does not alter the parties’ agency relationships, establish procuring cause, or create an entitlement to compensation.

5. Active Representation
   Cooperating brokers and agents are expected to actively represent their clients throughout negotiations and the transaction consistent with their duties to their clients and the scope of their representation agreements.

6. Compliance
   Cooperating brokers and agents must remain in compliance with applicable state and federal law, MLS rules, the REALTOR® Code of Ethics when applicable, and applicable brokerage policies.

Buyer-Broker Compensation

Chad Holland Real Estate does not establish or communicate offers of buyer-broker compensation through the MLS.

Any compensation to a cooperating buyer broker must be established by an applicable written compensation agreement or other legally enforceable agreement.

Buyer-broker compensation is not set by law and is negotiable.

The existence of a Buyer Representation Agreement between a buyer and another broker does not, by itself, obligate Chad Holland Real Estate or its seller to compensate that broker.

Likewise, being the procuring cause of a transaction does not, by itself, create an obligation for Chad Holland Real Estate to pay compensation where no applicable agreement establishing such an obligation exists.

When Chad Holland Real Estate and a cooperating broker enter into a compensation agreement that makes procuring cause a condition of compensation, the cooperating broker must satisfy that condition to be entitled to the agreed compensation.

Depending upon the property, applicable listing agreement, and transaction structure, buyer-broker compensation may instead be addressed through a seller contribution or other provision negotiated as part of the purchase contract.

All compensation arrangements are subject to the terms of the applicable written agreements and applicable law.

Procuring Cause

Chad Holland Real Estate recognizes procuring cause as an important consideration in determining entitlement to cooperative compensation when applicable to the compensation agreement.

Procuring cause is generally based upon the entire course of events resulting in the successful transaction. No single act automatically determines procuring cause.

Relevant circumstances may include, among other factors:

• Who introduced the buyer to the property;
• The nature and timing of the buyer’s relationship with the broker or brokers involved;
• Whether there was continuity in the broker’s efforts;
• Whether the original series of events was interrupted or abandoned;
• The reason another broker became involved;
• The conduct of the buyer and the brokers;
• Who participated in showings, negotiations, and the transaction; and
• The terms and conditions of any applicable representation and compensation agreements.

A Buyer Representation Agreement establishes a relationship between the buyer and the buyer’s broker. It does not automatically determine which broker is the procuring cause of a transaction or which broker is entitled to compensation from another broker.

Unrepresented Buyers

Prospective buyers who are not represented by another brokerage should contact Chad Holland Real Estate directly.

Texas law permits a license holder, under certain circumstances and with the required written agreement, to provide limited property-showing services without representing the prospective buyer.

A license holder acting under a non-representation agreement does not become the buyer’s agent merely by providing access to a property and may not provide representation, opinions, advice, or other brokerage services beyond those permitted by applicable law.

When Chad Holland Real Estate represents the seller, an unrepresented buyer should understand that the Listing Broker and Listing Agent represent the seller’s interests, not the buyer’s interests.

Seller Protection & Communication

For properties exclusively listed by Chad Holland Real Estate:

• All showings should be coordinated through the Listing Agent or Chad Holland Real Estate.
• Prospective buyers and cooperating brokers should direct property inquiries, offers, and negotiations through the Listing Agent.
• Property owners should refer prospective buyers and buyer representatives to their Listing Agent rather than independently negotiating the sale of the property.
• Cooperating brokers should promptly communicate changes in representation or other circumstances that could affect agency, showing arrangements, negotiations, or compensation.

These procedures are intended to protect our sellers, maintain clear agency relationships, document broker involvement, and reduce misunderstandings concerning representation and compensation.

Frequently Asked Questions

Does procuring cause still matter?

Yes. Procuring cause remains an important consideration in determining entitlement to compensation between cooperating brokers when it is applicable under the compensation arrangement.

Generally, procuring cause examines the uninterrupted series of events that resulted in the successful transaction. The determination depends upon the facts and circumstances of the transaction rather than any single event.

Does having a Buyer Representation Agreement automatically make an agent the procuring cause?

No. A Buyer Representation Agreement establishes the relationship between a buyer and the buyer’s broker. Agency and entitlement to compensation are separate issues.

An agent does not automatically become the procuring cause merely because the buyer signed a representation agreement with that agent.

Is the agent who first shows the property automatically the procuring cause?

No. The first showing can be an important factor, but no single act automatically establishes procuring cause. The entire course of events leading to the successful transaction must be considered.

Is the agent who writes the offer automatically the procuring cause?

No. Writing or presenting the successful offer does not, standing alone, establish procuring cause. The facts and circumstances leading to the transaction must be considered.

Can a broker be the procuring cause but still not be entitled to compensation from Chad Holland Real Estate?

Yes. Procuring cause and the contractual obligation to pay compensation are related but separate issues.

A broker may have contributed to or even procured a transaction, but Chad Holland Real Estate is not obligated to compensate another broker unless an applicable agreement creates that compensation obligation.

Does Chad Holland Real Estate advertise a standard buyer-broker commission?

No. Chad Holland Real Estate does not establish or communicate offers of buyer-broker compensation through the MLS.

Any applicable broker-to-broker compensation must be addressed through appropriate written agreements. Depending upon the transaction, a buyer may also negotiate for the seller to contribute toward the buyer’s brokerage obligations through the purchase contract.

Is a written agreement required before showing property?

Texas law requires written agreements in specified circumstances involving prospective buyers and also permits a written non-representation agreement for limited showing purposes when applicable legal requirements are satisfied.

A cooperating broker representing a buyer is responsible for complying with all applicable Texas law, MLS rules, and REALTOR® requirements concerning written buyer agreements.

What happens if another agent becomes involved after a buyer has already viewed the property?

The later involvement of another agent does not, by itself, establish or eliminate procuring cause.

Any compensation question will depend upon the applicable written agreements and the facts and circumstances of the transaction, including the continuity of the relationship and events leading to the successful transaction.

Who determines procuring cause if brokers dispute compensation?

Chad Holland Real Estate encourages brokers to resolve compensation questions professionally whenever possible.

When a dispute cannot be resolved, procuring-cause and contractual compensation disputes between REALTORS® may be subject to REALTOR® arbitration under Article 17 of the REALTOR® Code of Ethics or other available legal remedies, depending upon the parties, agreements, and circumstances.

The Texas Real Estate Commission does not determine entitlement to compensation in a broker-to-broker procuring-cause dispute.

Additional Brokerage Disclosures

• Chad Holland Real Estate requires agency and representation relationships to be documented in accordance with applicable law.
• Compensation arrangements between brokers should be documented in writing.
• Nothing in this policy creates an offer or promise of compensation.
• Nothing in this policy supersedes the terms of an applicable listing agreement, Buyer Representation Agreement, broker-to-broker compensation agreement, purchase contract, or other enforceable written agreement.
• Nothing in this policy is intended to predetermine the outcome of a procuring-cause or compensation dispute. Such disputes are fact-specific and governed by the applicable agreements, laws, and dispute-resolution procedures.
• Chad Holland Real Estate may update this policy as laws, regulations, forms, MLS rules, REALTOR® requirements, or brokerage procedures change.