Buyer and Seller Info: Do you wish to be a 'Client or Customer'?

What's the difference between a Client and Customer?

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The Client The Buyer Agent's role is to assist a buyer under a Buyer Agency contract in locating and acquiring the BEST property, NOT to sell buyer a particular property; The Seller Agent's role is to assist a seller under an Exclusive Right-To-Sell Listing contract to market and sell (i.e., produce a qualified buyer) under conditions acceptable to Seller, NOT to sell at any price.¹

Customer The real estate agent's role is to assist the buyer in locating and acquiring property. A seller without a listing contract, such as a "for sale by owner" is a customer. ¹

Client

Customer

Responsibilities Buyer Agent is fair with seller, but owes responsibility to buyer, including duty of skill and care to promote and safeguard buyer's best interests. Sellers Agent (Listing Agent) is honest with buyer, but owes responsibility to seller, including duty of skill and care to promote and safeguard seller's best interests.

Disclosure Disclosure to buyer pertinent facts (which might not be able to be disclose if subagent of seller) such as (1) seller near bankruptcy/foreclosure, (2) property overpriced, (3) other properties available at better buys, (4) negative features, such as poor traffic flow, chemical plant down the street, etc. Refrain from disclosing to seller such facts regarding buyer's position as buyer has options on three adjoining parcels. No duty to disclose name of buyer or money source to make down payment. Disclose to seller (which might not be able to be disclosed if a buyer's agent), such as (1) buyer's willingness to offer higher price or better terms, (2) buyer's urgency to buy, (3) buyer's plans to resell at profit or resubdivide to increase value, (4) buyer is sister of broker. Refrain from disclosing to buyer facts that may compromise seller's position (e.g., seller's pending divorce) unless under legal duty to disclose (e.g., zoning violation).

Documents Research and explain significant portions of important documents affecting transaction, such as prepayment penalties, subordination, right of first refusal; refer buyer to expert advisers when appropriate. Give buyer a copy of important documents, such as mortgage to be assumed, declaration of restrictions, title report, condominium bylaws, house rules.

Negotiation Use negotiating strategy and bargaining talents in buyer's best interests. Use negotiating strategy and bargaining talents in seller's best interests.

Property Goals/Showing Property Counsel buyer as to developing accurate objectives; may find that buyer who wants apartment building might be better with duplex at half the price or that buyer looking for vacant lot would benefit more from investment in improved property. Find buyer the type of property buyer seeks; more concerned with sale of seller's property that fits buyer's stated objectives.

Offer Help buyer prepare strongest offer; can suggest buyer prepare two offers and have broker submit lower offer first without revealing fact of second offer. Can help prepare and transmit buyer's offer on behalf of seller; must reveal to seller that buyer has prepared two offers, in case first offer not accepted.

^1.Modern Real Estate Practice, Fourteenth Edition; Galaty, Allaway and Kyle, Real Estate Education Company, Chicago. 1996.


The Client	The Buyer Agent's role is to assist a buyer under a Buyer Agency contract in locating and acquiring the BEST property, NOT to sell buyer a particular property; The Seller Agent's role is to assist a seller under an Exclusive Right-To-Sell Listing contract to market and sell (i.e., produce a qualified buyer) under conditions acceptable to Seller, NOT to sell at any price.¹

Customer	The real estate agent's role is to assist the buyer in locating and acquiring property. A seller without a listing contract, such as a "for sale by owner" is a customer. ¹

	Client	Customer
Responsibilities	Buyer Agent is fair with seller, but owes responsibility to buyer, including duty of skill and care to promote and safeguard buyer's best interests.	Sellers Agent (Listing Agent) is honest with buyer, but owes responsibility to seller, including duty of skill and care to promote and safeguard seller's best interests.

Disclosure	Disclosure to buyer pertinent facts (which might not be able to be disclose if subagent of seller) such as (1) seller near bankruptcy/foreclosure, (2) property overpriced, (3) other properties available at better buys, (4) negative features, such as poor traffic flow, chemical plant down the street, etc. Refrain from disclosing to seller such facts regarding buyer's position as buyer has options on three adjoining parcels. No duty to disclose name of buyer or money source to make down payment.	Disclose to seller (which might not be able to be disclosed if a buyer's agent), such as (1) buyer's willingness to offer higher price or better terms, (2) buyer's urgency to buy, (3) buyer's plans to resell at profit or resubdivide to increase value, (4) buyer is sister of broker. Refrain from disclosing to buyer facts that may compromise seller's position (e.g., seller's pending divorce) unless under legal duty to disclose (e.g., zoning violation).

Documents	Research and explain significant portions of important documents affecting transaction, such as prepayment penalties, subordination, right of first refusal; refer buyer to expert advisers when appropriate.	Give buyer a copy of important documents, such as mortgage to be assumed, declaration of restrictions, title report, condominium bylaws, house rules.

Negotiation	Use negotiating strategy and bargaining talents in buyer's best interests.	Use negotiating strategy and bargaining talents in seller's best interests.

Property Goals/Showing Property	Counsel buyer as to developing accurate objectives; may find that buyer who wants apartment building might be better with duplex at half the price or that buyer looking for vacant lot would benefit more from investment in improved property.	Find buyer the type of property buyer seeks; more concerned with sale of seller's property that fits buyer's stated objectives.

Offer	Help buyer prepare strongest offer; can suggest buyer prepare two offers and have broker submit lower offer first without revealing fact of second offer.	Can help prepare and transmit buyer's offer on behalf of seller; must reveal to seller that buyer has prepared two offers, in case first offer not accepted.