What is the definition of a customer in real estate transactions?

The definition of a customer in real estate transactions is specifically focused on their relationship to the brokerage involved in the transaction. A customer is generally considered to be an individual who has no brokerage relationship with either party in the transaction. This means that a customer does not have representation from a real estate agent or broker, which distinguishes them from clients who have a formal agreement with a brokerage.

In the context of real estate, this definition highlights the idea that customers may seek information or assistance but do not receive the full services or fiduciary responsibilities afforded to clients. This is important because it affects the duties owed by real estate professionals and how they interact with the parties involved in the transaction.

Understanding this distinction is crucial for real estate professionals as it shapes their obligations and the level of service they are required to provide. For instance, brokers owe various duties to their clients, such as loyalty and full disclosure, while their responsibilities to customers are limited. This differentiation helps ensure clarity in transactions and protects the interests of all parties involved.