#GoodReads – What’s the difference between a client and a customer

#GoodReads – via RECO – “Ask Joe”

“Client vs customer: What’s the difference?”

“…Although the terms “client” and “customer” are typically used synonymously in some businesses, they mean different things in real estate transactions and can have separate implications for a potential buyer and seller.

If you’re in the market to buy a home and engage with a brokerage, you will be given a choice to sign one of two types of legally binding agreements – a (client) representation agreement or a customer service agreement. If you choose to be a client, the brokerage is your champion. If you choose to be a customer instead, the brokerage provides you some level of service, but is not necessarily looking out for your best interest and is not obligated to keep your real estate search information confidential.

The brokerage has a fiduciary duty towards its clients. If you are a client, they are obligated to promote and protect your best interests in a real estate transaction. However, if you are a customer, the brokerage does not have that obligation, although they are still required to treat you with fairness, honesty and integrity.

…it really comes down to assessing which relationship with the brokerage would best meet your needs…

If you’re highly knowledgeable about real estate and comfortable making decisions on your own, you could opt for a limited customer relationship, if beneficial. That said, I am not sure why you would choose to be a customer, given that the obligations from the brokerage would be reduced and might have little or no impact financially. I urge you to sign with the brokerage as a client…

Regardless of whether you choose to be a customer or a client, make sure you thoroughly review and understand all documents you receive from the brokerage. Assess your needs, ask questions, and consult with your agent.”

To read the full article, click here.