In real estate, who is referred to as a customer?

Study for the 75 Hour Broker Pre Licensing Test. Study with flashcards and multiple choice questions, each question has hints and explanations. Get ready for your exam!

In real estate, the term "customer" typically refers to a consumer receiving ministerial acts from the licensee. This highlights a critical distinction in real estate practices: while a client is someone who has an agency relationship with a broker and receives fiduciary duties, a customer does not. Instead, a customer is the individual who may benefit from certain services or information provided by the broker or agent without the formal representation or obligations associated with a client relationship.

Ministerial acts are basic services that do not require the level of professionalism and fiduciary responsibilities owed to a client. These could include tasks such as providing information about properties, assisting in showing homes, or preparing documents without providing advice or advocacy. Understanding this distinction is important for real estate professionals to properly navigate their relationships with clients and customers, ensuring that all parties are informed about the level of service and representation they can expect.

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