Client or customer: know the difference

Some realtors want you to sign on as their client while others prefer that you be their customer. You may think that the terms are interchangeable, but there’s a significant difference.

What being a client means
Being a client involves signing a representation agreement with the agent you hire. This means the selected realtor has a fiduciary duty and is obligated to protect your best interests. Here’s what you can expect from them:

• They’ll keep information you give them confidential
• They’ll negotiate on your behalf and put your interests first
• If you’re buying, they’ll take steps to find out all relevant information about the property you’re buying
• If you’re selling, they’re obligated to convey all written offers to you

What being a customer means
If you sign a customer service agreement instead of a representation agreement, the realtor you hire will still be able to provide you with competent and conscientious service. However, they won’t owe you a fiduciary duty. Here’s what you can expect:

• They’ll treat you fairly but won’t privilege your interests
• They’re free to share any information you give them
• If you’re buying, they’ll only disclose material facts they already know about the property
• If you’re selling, they don’t have to convey all written offers to you, unless otherwise specified

Why this matters
It’s important to understand the difference between client and customer to ensure you know what to expect from the realtors you do business with. For instance, keep in mind that if you signed a customer service agreement, you shouldn’t expect your realtor to keep information you share with them confidential. You should be particularly cautious with realtors who handle both sides of a transaction.

However, you don’t always need to sign on as a client. Simply make sure to articulate your needs as clearly as possible and understand your real estate representatives’ obligations toward you.