10.7 Client vs. Customer
1 min readLast updated: edition
**Client
**
The REALTOR® Code of Ethics Standard of Practice 1-2 defines a client as the person or entity with whom the licensee has a legally recognized agency relationship. The agency relationship may be created in any one of the following ways: by express or implied agreement. This means that written documents or implied agreements as evidenced by the parties’ words and conduct.
**Customer
**
A customer is someone who receives information or services from a licensee, but who has no contractual relationship with the licensee. No fiduciary duties are owed to a customer. However, the licensee still has the obligations to a customer of fair and honest dealings and disclosure of material facts.
The fiduciary duties of the buyer’s agent are owed exclusively to the buyer and not to the seller. The fiduciary duties of the listing agent are owed exclusively to the seller and not to the buyer. Fiduciary duties are not owed to a customer.
Company policy is to disclose to third parties (i.e. other agents, homeowners) if you have a client or customer relationship with any person you state you “are working with.” This is especially important when contacting sellers about selling their home to a potential buyer.
