agency

client

A client is the person who has hired a real estate licensee and entered into an agency relationship, such as a seller under a listing agreement or a buyer under a buyer agency agreement. The licensee owes the client full fiduciary duties, including loyalty, obedience, confidentiality, disclosure, accounting, and reasonable care. The client is also called the principal. Other parties in the transaction are customers.

Exam tip
Client receives advice and advocacy (fiduciary duties); customer receives honest and fair dealing. Do not mix up the two.
Example
A seller signs an exclusive listing with a broker and becomes the broker's client; the buyer who tours the home without representation is a customer.

1. A mortgage lender offers a salesperson $200 for every client referred. Under RESPA this is:

Answer & explanation

Answer: D. RESPA prohibits kickbacks and unearned referral fees between settlement service providers and real estate licensees, even if disclosed.

Related terms & state variants

Sources

Source verification pending. Confirm current requirements with your state regulator.

Last verified: 2026-10-23