Client versus customer
A client has an agency relationship with the agent. A customer may receive services without representation. Disclosure and consent rules depend on state law; do not infer representation from friendliness alone.
Fiduciary duties
Common agency duties include loyalty, obedience to lawful instructions, disclosure, confidentiality, accounting and reasonable care. A seller’s agent serves the seller’s interests, not their own payout. Confidentiality can continue after the relationship ends under applicable rules.
Seller and buyer agency
A seller’s agent represents the seller; a buyer’s agent represents the buyer. The source of compensation does not necessarily determine whom the agent represents. Read the agency agreement and state disclosure rules.
Dual and designated agency
Where permitted, dual agency involves representation of both sides and requires the state’s prescribed disclosures and consent. Some states prohibit it or use different models. Designated agency may assign different agents within a brokerage, subject to state rules.
Practice example
A seller privately reveals the lowest price they would accept. Their agent should not tell a buyer without permission or a legal duty to disclose. Distinguish confidential negotiating information from legally required material-fact disclosure.
Verify locally
Commission rules, agency statutes and required forms define your state’s arrangements and timing. Use your state course for exam practice; this overview is not legal advice.
Independent study guidance, not legal advice. Verify current requirements with your regulator.