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CLIENT VS. CUSTOMER - REALTORS(R) BE CAREFUL WHAT YOU PROTEST!

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Real Estate Agent with Coldwell Banker Fort Lauderdale Beach

CLIENT VS. CUSTOMER - REALTORS(R) BE CAREFUL WHAT YOU PROTEST!

I have blogged about this many times in the past. I don't know for sure if each state has a different definition of Client vs. Customer, HOWEVER.

I love the word "Client" as well, it sounds so much more professional than calling someone a "Customer".

HOWEVER!   In FLORIDA, we have customers, we are for the most part "Transaction Brokers"...therefore we have a "Customer".

Clients mean that you have a "FIDUCIARY" RELATIONSHIP with your buyer or seller.

You should be very careful about the word you choose.

If you call someone a "client" - you are putting yourself out there as having a "Fiduciary" agreement with the person you are working with.

A "customer" on the other hand, is not a situation where you are in a "Fiduciary" relationship.

Understand the "Fiduciary" word...so you don't get yourself in a situation that might get you into trouble.

Just a thought, but think about it.  I used the word "client" because is sounded more professional to me as well, until my broker corrected me...Just sayin'.

Karen Monsour, 954-464-4194

www.KarenSellsFloridaWaterfront.com

(Copyright© 2011 Karen L. Monsour, All Rights Reserved.)

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Best regards,

Karen Monsour, REALTOR®

Coldwell Banker Fort Lauderdale Beach
4757 N. Ocean Blvd.
Fort Lauderdale, FL 33308
954-464-4194 cell
954-969-9974 fax
www.KarenSellsFloridaWaterfront.com
A recent recipient of Realtor.com®'s "Award of Excellence" for online marketing.

Multi-million dollar producer.


FN LN
Toronto, ON

Hi Karen - In Ontario, we differentiate between customers and clients for real estate transactions.

Mar 17, 2011 06:18 PM
Karen Monsour
Coldwell Banker Fort Lauderdale Beach - Fort Lauderdale, FL
REALTOR, SSRS - Sells FL Waterfront, Short Sale Expert!

Marc,

Agents in Florida should do so as well. I had a great trainer who explained the difference to me from the beginning.  Those that didn't get that from school are allowing themselves to get into trouble.

Thanks for your opinion.

Mar 17, 2011 06:28 PM
Tim Lorenz
TIM LORENZ - Elite Home Sales Team - Mission Viejo, CA
949 874-2247

The law also defines what the relationship is not just the work.

Mar 17, 2011 06:29 PM
Pamela Seley
West Coast Realty Division - Murrieta, CA
Residential Real Estate Agent serving SW RivCo CA

Karen, thanks for pointing this out. I was always told we have clients. I'll have to dig deeper into this. Thanks for the heads up! :)

Mar 17, 2011 07:04 PM
Paul Caloca
The Papas Group (DRE #01766524) - Scotts Valley, CA

States a very different. In California, real estate licensees are defined by both California real estate and agency law to have feduciary responsibility to their principles. This is a much higher standard than transaction brokers. All part of the territory when we accept our license here. I guess that's why so many agent do get in trouble and why there are so many law suits against agents in California. Sigh.

Mar 17, 2011 07:44 PM
Andrea Swiedler
Berkshire Hathaway HomeServices New England Properties - New Milford, CT
Realtor, Southern Litchfield County CT

Karen, we are very different here as we are not transactional brokers. The difference here is clearly defined.

Mar 18, 2011 12:13 AM
Sidney Kutchuk - Realty Works Temecula Kutchuk - Realty Works Temecula
Realty Works Temecula - Temecula, CA
Realty Works Temecula

Karen:  Client does sound very much more professional.  I use it all of the time and never thought it could cause an issue as our client relationships must be in writing here in California.

Mar 21, 2011 01:34 PM
Karen Monsour
Coldwell Banker Fort Lauderdale Beach - Fort Lauderdale, FL
REALTOR, SSRS - Sells FL Waterfront, Short Sale Expert!

Jane, I love your posts.. California might have different rules. In Florida, we are all Transaction Brokers unless duly noted.  As Transaction Brokers in Florida, we do not have a fiduciary relationship with the "customer".  If we do, then you sure then can call them your "client".

Mar 21, 2011 04:14 PM
Pam Jank
Coldwell Banker Schneidmiller Realty - Coeur d'Alene, ID
Your Coeur d'Alene & North Idaho Real Estate Pro

Karen, you are so right.  Even I slip and say Client when they are actually a Customer.  I have to make a better effort to correct myself.

Mar 25, 2011 05:27 PM
Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • GRI • HAFA • PSC Calabasas CA

Here are the definitions from the Code:

Client:  someone “with whom the REALTOR® or a REALTOR’S® firm has an agency or legally recognized non-agency relationship.”
Customer:  “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."

Sep 13, 2015 09:36 PM