What’s the difference between a Customer and a Client?

In real estate transactions, buyer-clients are entitled to a higher level of service than buyer-customers.  Becoming a client typically involves signing a Buyer Representation Agreement with a buyer’s representative, who then owes you fiduciary duties.  This means that your buyer’s rep is expected to exercise discretion when acting on your behalf, including adhering to very specific responsibilities, obligations, and high standards of good faith and loyalty.

This means that a client has a signed agreement with the REALTOR®. A customer is typically represented by another REALTOR®.  However, if the REALTOR® is representing both the seller and the buyer, then both must sign a Dual Agency Agreement.  Richard, however, will not do a Dual Agency Agreement, because it is too difficult to be completely transparent with both parties.

Even if you are working with a Real Estate Team, as a buyer, you should sign a Buyer’s Representative Agreement with the agent who is working with you as a buyer. If not, that REALTOR® is legally working for the seller as a sub-agent.