Who is considered a customer in real estate transactions?

In real estate transactions, a customer is defined as an individual who does not have an agency relationship with a real estate professional. This means that the customer is not represented by an agent and does not have the same rights or obligations as a client who is under a fiduciary relationship with their agent.

This distinction is important in the realm of real estate practices, as it outlines the different levels of service and representation available. Customers may receive limited information and assistance from real estate agents, primarily related to property listings and general market information, but they do not benefit from the legal duties of care, loyalty, or disclosure that an agent owes to a client.

In contrast, a client with a fiduciary relationship is someone who has entered into an agreement where the agent is obligated to act in the client's best interests. A party under a purchase agreement is often beyond the scope of a customer definition, as they are typically engaged in a more formal relationship. A licensed real estate agent, while knowledgeable about the process and market, is not the customer; rather, they are the service provider in the transaction.