agency

customer

A customer is a party in a real estate transaction whom a licensee works with but does not represent. The licensee owes a customer honesty, fair dealing, and disclosure of known material facts, but not full fiduciary duties such as loyalty or confidentiality. For example, a seller's agent dealing with an unrepresented buyer treats the buyer as a customer. Terminology and duties vary by state.

Exam tip: Client equals representation and fiduciary duties; customer equals no representation but honesty and fair treatment. Exams often ask which duties a customer is owed.
Example: A listing agent shows a home to an unrepresented buyer, answers questions honestly, but does not advise the buyer on how low to offer.

1. Which duty does a seller's agent owe to a buyer who is a customer, not a client?

Answer & explanation

Answer: D. Customers are owed HARD duties - Honesty, Accounting, Reasonable skill and care, and Disclosure of material facts - but not loyalty, obedience or confidentiality.

Related terms & state variants

agency client fiduciary material fact

Sources

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

Last verified: 2026-10-23