Are You a Client or a Customer?
Understanding Agency Representation
Many home buyers don’t realize there is an important legal distinction between being a client and being a customer.
That distinction is called agency, and it can have significant consequences during a real estate transaction.
When you visit an open house or call the listing agent directly, it may feel as though that agent is there to help you. While they may be professional, courteous, and informative, their primary responsibility is to represent the seller—not the buyer.
In fact, anything you tell a listing agent about your financial situation, motivation, urgency, or negotiating strategy may have to be shared with the seller.
What Is a Customer?
A customer is someone who receives limited services from a real estate agent but is not represented by that agent.
The agent owes the customer honesty and fair dealing, but does not owe the customer fiduciary duties.
What Is a Client?
A client is someone who has entered into a Buyer Representation Agreement with a real estate broker or agent.
As a client, you are entitled to the highest level of legal representation recognized under California law—a fiduciary relationship.
This means your agent must:
- Act solely in your best interests
- Exercise skill, care, and diligence
- Maintain confidentiality
- Disclose material facts
- Avoid conflicts of interest
- Be fully accountable for their actions
A fiduciary duty is the highest standard of care recognized by law.
Why It Matters
Buying a home is one of the largest financial decisions most people will ever make. Having an agent who is legally obligated to protect your interests can make a significant difference throughout the process.
Our job is not simply to help you find a home. It is to help you make informed decisions, negotiate effectively, identify potential risks, and guide you through every step of the transaction.
Becoming a Client
We work with our buyers under a written Buyer Representation Agreement that clearly outlines our mutual responsibilities and expectations.
There is no fee to become a client. It simply establishes that we are committed to working together and that we will represent your interests throughout the home-buying process.
After all, when making one of life’s most important financial decisions, wouldn’t you rather have an advocate than simply a salesperson?
We hope thise helps you to better understand the role of a real estate agent in the transaction.
Drew and Christine Morgan are experienced REALTORS and NOTARY PUBLIC located in Belmont, CA, where they own and operate MORGANHOMES, Inc. They have assisted buyers and sellers in their community for over 30 years. Drew and Christine have received the coveted Diamond award, ranking among the top 50 agents nationwide and the top 3 in Northern California by RE/MAX. To contact them, please call (650) 508.1441 or emailinfo@morganhomes.com.
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This article provides educational information and is intended for informational purposes only. It should not be considered real estate, tax, insurance, or legal advice; it cannot replace advice tailored to your situation. It’s always best to seek guidance from a professional familiar with your scenario.
BROKER | MANAGER | NOTARY
