Which of these best defines "customer" in real estate practice?

In real estate practice, a "customer" is best defined as a potential buyer or seller who has not entered into a formal agency relationship. This distinction is important because it highlights the level of service and representation that the parties receive. A customer is someone who may be interested in purchasing or selling real estate but does not have an established agreement that would bind them to an agent or brokerage.

The term emphasizes that while customers may receive information and assistance, they do not receive the full range of fiduciary duties—such as confidentiality and full loyalty—that agents owe to their clients. This recognition of the customer relationship helps ensure clarity in the duties of the real estate professionals involved.

Options highlighting entities with formal contracts or listing agreements represent clients who engage in a contractual relationship with an agent, thus activating the fiduciary duties owed to them. Meanwhile, a licensed agent holding fiduciary duties necessarily pertains to the obligations owed to clients rather than the definition of a customer, reinforcing the idea that customers are outside this formal arrangement.