Client vs. customer: Semantics or a really big deal?

Client vs. Customer: Semantics or a really big deal?

It has become one of my favorite sayings - “In real estate, representation is everything”.

I find that to be especially true in this current buyer’s market. So many buyers missing out on great opportunities because they are unaware that they are entitled to a very special kind of representation and instead wind up working with an agent who is acting in the best interest of the seller.

In my most recent article in Dan’s Hamptons “Ask the Expert” column, I covered a few basics on how a buyer can tell who the agent represents and why that’s important.

Hopefully, the tables below will clarify any confusion as to the two very different relationships when it comes to buyers working with real estate agents.

Please don’t be thrown off by the word customer. People automatically associate that word with someone who is purchasing something -- thereby relating it to the buying side of real estate. Well, that’s not necessarily so, a customer can be a seller as well. In real estate jargon, the definition of customer is “the third party with whom the agent deals on behalf of the principal (client). Sounds pretty unappealing, doesn’t it?

Hampton One R. E. Group

You’re Hamptons Exclusive Buyer’s Agent- where all our buyers are clients

CUSTOMER	RESPONSIBILITY
HONESTY	Ensure all laws and regulations pertaining to the transaction are obeyed
ACCOUNTING	Safeguard money and property held on behalf of the customer
REASONABLE SKILL	Provide customer with standards of practice and competence that are reasonably expected.
DISCLOSURE (Material Fact and Agency)	Disclose material facts about a property. Disclose agency relationship. Explain the difference between a customer and client relationship in a timely fashion SO THAT A CUSTOMER CAN PROTECT THEIR OWN INTERESTS!

CLIENT	DUTY
FULL DISCLOSURE	Disclose all info that might affect the clients decision
LOYALTY	Do not conduct the clients business in such a way to benefit the customer or any other party to the detriment of the client’s interest
CONFIDENTIALITY	Do not divulge any confidential information about the client told or learned by the agent within the agency relationship
REASONABLE CARE AND DILIGENCE	Protect the client from foreseeable risks or harm and recommend the client obtain expert advice or assistance when needs are outside the scope of the agents expertise
OBEDIENCE	Act subject to the client’s continuous control (following all lawful instructions)
ACCOUNTING	Safeguard money and property held on behalf of client