What distinguishes a client from a customer in a real estate context?

In the context of real estate, the key distinction lies in the nature of the relationship between the parties involved. A client is someone who has entered into a formal agency relationship with a licensee, such as a real estate agent. This agency relationship establishes a fiduciary duty, where the licensee is obligated to act in the best interests of the client. This includes providing loyalty, full disclosure, and acting with care and diligence on behalf of the client.

On the other hand, a customer does not have this formal agency relationship with the licensee. Customers receive services but do not benefit from the same level of legal protection or personal advocacy that clients do. The absence of an agency relationship means that licensees are not bound by the fiduciary duties they owe to clients.

Therefore, the fundamental characteristic that sets a client apart from a customer in real estate is the existence of an agency relationship, which is why this option is the correct answer.