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At what point does a "customer" become a "client"?

By
Real Estate Broker/Owner CA#01772851 HI#RB21268

There are some gray areas when it comes to "clients" vs "customers". For example,

YOU ARE DEFINITELY A CLIENT WHEN YOU HAVE SIGNED ONE OF MY FORMS OR CONTRACTS.

Because when you do, real estate law needs me to sign a "disclosure" that tells you what our relationship is. This may include that I am your "buyers agent" if you are making an offer on a home. Or I am your "sellers agent" if we agree to sign a listing.

AND I NEED TO BE CAREFUL ABOUT AN "IMPLIED" AGENCY.

For example, if you call me out of the blue and ask me anything about a listing that I have, we need to establish pretty quickly whose "side" I am on. In fact, unless we have a signed agreement, I am definitely on the "sellers" side and have his fiduciary interests at heart. That means, I cannot tell you what the seller has said about what price he might accept, if it is less than the stated sales price.

Therefore, you, the buyer, may THINK I have a relationship with you as a "client", but you don't. You are my customer. And I need to tell you that so we don't get into an implied "dual agency". 

DUAL AGENCY:

Dual Agency is where I represent you both.  But, in California, I still have the fiduciary interests of the seller at heart. Otherwise I treat you equally, fairly, honestly, etc. Interestingly, in Hawaii where I also hold a broker's license, you then both become "customers" and are treated equally all the way down the line. 

GRAY AREAS:

So you see, there could be a misunderstanding about our relationship between the time you call/talk to me and the time you get serious about BUYING or LISTING.

It is my duty to inform you of my relationship to you at first meeting/talking to you ie. "I am the listing broker of Home A" followed by "are you represented by an agent". And if you are not, it can go a couple of ways; either I tell you I can help you as a "dual agent" or "you need to get your own representation". In California, Dual Agency is legal and I have yet to sign up a seller as a client who would not consent to dual agency.

As to the seller, once he has signed a listing agreement, he is the client. Not before, not once the agreement has run out. Although there are residual confidentiality issues that continue even after a listing expires.

 

 

 

Posted by

Hella Rothwell at Carmel Beach during Concours WeekCarmel-by-the-Sea Beach and Pebble Beach Golf Course California

Whether buying or selling oceanfront, oceanview, commercial or any type of real estate in Carmel, Pebble Beach, Pacific Grove, Monterey, Carmel Valley and Big Sur, I can help you. Call me and let's meet in my Carmel-by-the-Sea office in Su Vecino Court on Dolores between 5th & 6th.

Or we can just chat on the phone to discuss your real estate needs.

Are you out of the area? No problem, I often never even meet my clients. The whole transaction is handled long distance.

As an independent real estate broker licensed in California and Hawaii, I can represent you with residential real estate, commercial properties & investment opportunities.

For more information

www.HellaRothwell.com & www.RothwellRealty.com

& www.HellaHawaii.com

Member: National Association of REALTORS, California Association of REALTORS, Hawaii Association of REALTORS, Del Norte Association of REALTORS, Honolulu Board of REALTORS. Also MLS Listings in California.

 ________________________________________________________________

Hella Mitschke Rothwell (R)

Real Estate Broker/Owner/Realtor®
Licensed in California #01772851 & Hawaii #RB-21268

Tel. 831-626-4000 

Fax 1-877-822-9332

ROTHWELL REALTY INC.: Su Vecino Court, Lincoln & Dolores between 5th & 6th, Carmel-by-the-Sea, CA 93921

 

MAILING: P.O. Box 4554, Carmel-by-the-Sea, CA 93921

 
Email: HellaRothwell@gmail.com


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Disclaimer: Hella Rothwell does not guarantee nor is in any way responsible for the accuracy of the information provided herein, and provides said information without warranties of any kind, either expressed or implied.

Comments(5)

John McCormack, CRS
Albuquerque Homes Realty - Albuquerque, NM
Honesty, Integrity, Results, Experienced. HIRE Me!

Good Thursday morning Hella M. Rothwell, Broker/Realtor® -

A great explanation in the difference in a customer or "real estate prospect" as I call them and a client.  

Aug 26, 2015 11:55 PM
Nicole Doty - Gilbert Real Estate Expert
Zion Realty - Gilbert, AZ
Broker/Owner of Zion Realty ZionRealtyAZ.com

Great distinctions here Hella. It can be confusing for potential buyers and sellers to know what all the rules and laws are so we have to properly educate them. 

Aug 27, 2015 12:47 AM
David Gibson CNE, 719-304-4684 ~ Colorado Springs Relocation
Colorado Real Estate Advisers LLC - Colorado Springs, CO
Relocation, Luxury & Lifestyle residential

Hella,

 

Your Hawaii situation sounds like the “transaction brokerage” relationship we have here in Colorado where both parties are  treated equally all the way down the line.

Aug 27, 2015 12:59 AM
Christine O'Shea
Christine E O'Shea Broker - Naples, FL

Hi Hella M. Rothwell, Broker/Realtor® It always amazes me how rules vary from state to state!  Here in FL we do not have clients, we have customers.  We are transaction agents.  Sometimes people get upset with that and I cannot tell you how many agents refer to their buyers or sellers as "clients"!

Aug 27, 2015 01:22 AM
Hella M. Rothwell, Broker/Realtor®
Carmel by the Sea, CA
Rothwell Realty Inc. CA#01968433 Carmel-by-the-Sea

John McCormack - you are so right. Some call them a "prospect" and there is no "client" relationship established yet.

Nicole Doty - Gilbert Real Estate Expert - And we need to establish that quickly so there is no "implied" relationship.

David Gibson - That is correct, they are the same.

Christine OShea - That's where an "implied" relationship can be established and can lead to legal ramifications.

Aug 27, 2015 03:35 AM