In property transactions, one core rule stands firm: an agent earns commission only if they are the effective cause of the sale. This goes far beyond simply introducing a buyer to the property.

The challenge lies in pinpointing who truly drove the deal to completion. While numerous parties may play a role in the process, not all can rightfully claim to be the decisive dealmaker. To resolve this conundrum, lawyers turn to case law to address a critical question: who was the true effective cause in finalizing the agreement?

By examining pivotal rulings, I aimed to identify key elements that reveal who successfully closed the deal. They are:

• If no new cause intervenes after the initial introduction, then that introduction is the effective cause. [1]
• The first agent to introduce a buyer to a property usually remains the effective cause of the sale, but this is not always the case. [2]
• Consistently leaving a card with potential buyers after showing them properties show effort and can be used in evidence to determine whether the showcase of a property was the effective cause.[3]
• Introducing a property to buyers outside their originally desired location, capturing their interest and helping them fall in love with the home, can make an area a secondary consideration. [4]
• If a new factor emerges after that first introduction, a further enquiry is launched. The new factor is analyzed to establish whether it overshadows the first introduction or whether that first introduction remains the operative factor in sealing the deal. [5]
• A time lapse between an introduction and a new intervention can break the link between the different introductions. The last introduction then becomes the effective cause of the sale. [6]
• Sometimes an independent factor arises by no effort or doing of the agent and this independent intervening factor removes the justification for commission. [7]
• The evidence of a purchaser relating to the introduction can assist in deciding who is the effective cause. [8]
• Frequent visits to the seller, active negotiation efforts, and visible commitment to closing the deal all help establish the agent as the real effective cause.
• The subsequent cancellation of a contract does not negate the estate agent’s efforts in facilitating the agreement and the agent’s claim for commission remains. [9]
• The mandate and efforts of the agent will determine whether there is claim for commission. [10]
• An introduction without a mandate and fidelity fund certificate can negate the claim for commission. [11]
• The first introduction and mandate create an effective cause. [12]

Being involved in a sale isn’t enough. You don’t get paid for showing up, you get paid for showing impact. Ultimately, the agent whose efforts were decisive in concluding the sale, not just involved, but pivotal will be recognized as the effective cause.