What is the difference between a client and a customer in real estate?

What is the difference between a client and a customer in real estate?

• A. A client has agency relationship; a customer does not
• B. A customer has more rights than a client
• C. Clients cannot be treated fairly
• D. Customers pay agents higher commissions

Answer: (A)

In real estate, the distinction between a client and a customer primarily revolves around the nature of the relationship and the level of representation provided. A client is someone who has entered into an agency relationship with a real estate professional. This means that the agent has a formal agreement to represent the client’s interests, providing them with fiduciary duties such as loyalty, confidentiality, and full disclosure. On the other hand, a customer is not represented by the agent in the same capacity and does not have the same rights associated with agency. The agent may provide basic services or information to a customer, but they do not owe the same ethical or legal duties that they owe to a client. Thus, the correct choice emphasizes the fundamental nature of the agency relationship, confirming that the client receives more comprehensive support and advocacy from their agent compared to a customer.

In real estate, the distinction between a client and a customer primarily revolves around the nature of the relationship and the level of representation provided. A client is someone who has entered into an agency relationship with a real estate professional. This means that the agent has a formal agreement to represent the client’s interests, providing them with fiduciary duties such as loyalty, confidentiality, and full disclosure.

On the other hand, a customer is not represented by the agent in the same capacity and does not have the same rights associated with agency. The agent may provide basic services or information to a customer, but they do not owe the same ethical or legal duties that they owe to a client. Thus, the correct choice emphasizes the fundamental nature of the agency relationship, confirming that the client receives more comprehensive support and advocacy from their agent compared to a customer.