The expression identifies the real estate agent who initiated a series of uninterrupted events that ultimately led to the successful conclusion of a sale. This agent is deemed the one whose actions were the primary reason a buyer and seller entered into a binding agreement. For instance, if an agent shows a property to a buyer, and that buyer, without significant intervention from other agents, eventually purchases the property, the initial agent is typically considered to be the efficient cause.
Determining who fulfills this role is crucial in resolving commission disputes between agents, especially when multiple agents have shown the same property to the eventual buyer. Understanding the concept can also prevent costly litigation. Historically, disputes over commissions have arisen because the definition is fact-dependent and open to interpretation, highlighting the need for clear documentation and communication throughout the sales process.