SU # 11__Distinguishing Client & Customer Flashcards
Define the term client.
The person in a transaction that the licensee represents and to whom the licensee owes statutory duties.
Define the term customer.
A consumer who is not represented by a licensee, but for whom the licensee is performing ministerial acts.
To whom does a licensee owe statutory duties?
To a client
John wants to know from Licensee Paul the size of the bedrooms he saw in a listing on the Internet. John is not represented by anyone. Is John a client, a customer or a consumer?
John is a consumer.
What actions demonstrate exercising care when representing a buyer? (4)
Helping the buyer locate appropriate housing
Evaluating property values and property conditions
Determining financing alternatives
Presenting offers and counteroffers with the buyer’s interests in mind
What exception exists to the duty of obedience when working with a client?
A licensee is not bound by the duty, if the principal’s directions are not legal.
What are the duties a CUSTOMER can expect from a licensee? (3)
Honest dealing
Reasonable care and skill
Proper disclosure
A seller’s licensee must disclose what kinds of things to the seller? (5)
Purchase offers
Who the prospective purchasers are and if the licensee has a relationship with them in any way
Ability of the purchaser to complete the transaction
Ability of the purchaser to offer a higher price unless the purchaser is also a client
Purchaser’s intention to resell the property for a profit unless the purchaser is also a client
Fiduciary duty is primarily based on ______________.
Trust
Shared Interest
Commission
Due Diligence
Trust
When a licensee responds to an inquiry from a person seeking general information, what type of working relationship is established?
Client
Customer
Consumer
Guest Customer
Consumer
A licensee has lost a portion of the earnest money. Which fiduciary duty has the licensee violated?
Care
Loyalty
Disclosure
Accounting
Accounting
When a licensee represents a seller, what type of relationship is established?
Shareholder
Consumer
Client
Customer
Client
Who may be liable when a buyer client’s interests are not protected?
The listing agent
The seller
The buyer’s agent
The principal
The buyer’s agent
When a licensee works with an unrepresented seller by showing a buyer client the seller’s property, what type of working relationship is established with the seller, after proper written notice to the seller?
Consumer
Customer
Guest Client
Client
Customer
Al Dobbs, a licensee, has been hired by the seller who signed a listing agreement. What is true regarding this situation when a buyer is shown the property by Al Dobbs under Ministerial Acts?
The seller is the customer and the buyer is the client.
The buyer is the customer and the seller is the client.
Both the seller and buyer are clients.
Both the seller and buyer are customers
The buyer is the customer and the seller is the client.
With whom do licensees typically have a working relationship?
client, customer, consumer
MLS, seller, commissioner
stakeholder, stockholder, shareholder
husband, wife, child
client, customer, consumer
Agency relationships impose fiduciary duties on both
Consumer and Seller
Licensee and Consumer
Customer and Client
Client and Licensee
Client and Licensee
Seller Jane is currently under contract with Broker Jill. Jane meets Broker Fred at a baseball game and they discuss real estate market trends. Jane calls Fred the following week to seek new representation. What action can Fred take?
Fred must get permission from Jane’s broker before speaking with her.
Fred can cancel Jane’s current listing.
Fred must end the conversation and wait until Jane is no longer under contract.
Fred can discuss the terms of a future agency representation with Jane
Fred can discuss the terms of a future agency representation with Jane
