In a past life when I worked in the corporate world people referred to their opportunities using the words customer and client interchangeably. In real estate there is a big difference. Down here in Frisco Texas and I am sure throughout the nation, the definitions of a client and a customer are critical to understand regardless of if you are a buyer or a seller.
National and Texas Code of Ethics
In the Code of Ethics and Standards of Practice of the National Association of REALTORS®, Under Duties to Clients and Customers, Article 1, standard of practice 1-2 you will find the following:
"As used in this Code of Ethics, “client” means the person(s) or entity(ies) with whom a REALTOR® or a REALTOR®’s firm has an agency or legally recognized non-agency relationship; “customer” means a party to a real estate transaction who receives information, services, or benefits but has no contractual relationship with the REALTOR® or the REALTOR®’s firm"
The key difference is that as a customer you have not established an agency with a real estate agent or broker. This is important to understand when you are searching for a new home. In Texas, if you are showing a home, you by default represent the seller unless you have a buyer's agreement in place with a client. Then you represent the buyer. For a great understanding based on this scenario I highly recommend you read this article from the Examiner. I also want to share with you the Texas Real Estate Commission definition of a fiduciary relationship which is created once you sign a buyer's representation agreement.
Fiduciary Duties
Starting a Search, Choose an Agent
When you start your search for a home you most likely have made the decision to at least investigate the options of moving. You have probably found some websites that provide homes for sale information. If you are have already determined the area you want to move to NOW is the time to start looking for a real estate agent whom you feel confident will professionally represent you and ensure they put your needs and requirements above everyone else including their own.
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