What is the term for a person with whom the agent interacts but does not represent?

What is the term for a person with whom the agent interacts but does not represent?

• A. Client
• B. Customer
• C. Principal
• D. Broker

Answer: (B)

The term for a person with whom the agent interacts but does not represent is "customer." In real estate, a customer is someone who benefits from the agent's services but is not formally represented by the agent in a fiduciary capacity. This means that while the agent might provide information and assistance to the customer, the agent is not obligated to act in the customer's best interest as they would for a client. This distinction is important because it highlights the different levels of service and responsibility in a real estate transaction. Agents owe fiduciary duties, such as loyalty and full disclosure, to their clients, while the same legal obligations do not extend to customers. This allows customers to receive basic information about properties and transactions without the full scope of representation. Other terms in the options denote different relationships within real estate. A client refers to someone who has entered into an exclusive relationship with an agent, which includes a duty of loyalty. A principal is usually the party (buyer or seller) whose interests an agent represents. A broker refers to a licensed individual who assists in transacting real estate and might either represent clients or customers, depending on their role in the transaction. Understanding these terms helps clarify the dynamics of real estate relationships.

The term for a person with whom the agent interacts but does not represent is "customer." In real estate, a customer is someone who benefits from the agent's services but is not formally represented by the agent in a fiduciary capacity. This means that while the agent might provide information and assistance to the customer, the agent is not obligated to act in the customer's best interest as they would for a client.

This distinction is important because it highlights the different levels of service and responsibility in a real estate transaction. Agents owe fiduciary duties, such as loyalty and full disclosure, to their clients, while the same legal obligations do not extend to customers. This allows customers to receive basic information about properties and transactions without the full scope of representation.

Other terms in the options denote different relationships within real estate. A client refers to someone who has entered into an exclusive relationship with an agent, which includes a duty of loyalty. A principal is usually the party (buyer or seller) whose interests an agent represents. A broker refers to a licensed individual who assists in transacting real estate and might either represent clients or customers, depending on their role in the transaction. Understanding these terms helps clarify the dynamics of real estate relationships.