Which of the following best describes the difference between a client and a customer in real estate?

Q: What is the correct answer to: Which of the following best describes the difference between a client and a customer in real estate?

The correct answer is A client receives fiduciary duties while a customer receives fair and honest treatment. Option C correctly identifies the core legal distinction between clients and customers in Canadian real estate law. Under TRESA, RESA, and similar provincial legislation, clients receive full fiduciary duties through an agency relationship, while customers receive fair and honest treatment as required by statute but without the enhanced protections of fiduciary obligations. This fundamental difference in duty levels defines the relationship types and is consistently applied across Canadian jurisdictions.

Q: What background knowledge is needed for this Agency & Professional Ethics question?

Canadian real estate law distinguishes between two relationship types: client (agency) and customer (non-agency). Clients have formal representation agreements creating fiduciary relationships with duties of loyalty, confidentiality, disclosure, obedience, and accounting. Customers receive services without agency, owing only fair and honest treatment as mandated by provincial legislation. TRESA (Ontario), RESA (Alberta), and BCFSA (BC) regulations require written agreements for client relationships and specify different disclosure obligations. This framework protects consumers by clarifying expectations and prevents dual agency conflicts.

Q: What is a good way to remember the answer to this Agency & Professional Ethics question?

Remember CARE: Clients get CARE (Complete Agency Relationship with Enhanced duties), while Customers get FAIR (Fair And Impartial Representation only). Clients receive the full 'care package' of fiduciary duties, customers get fair treatment but not the enhanced 'care' of agency. When you see client vs customer questions, think CARE vs FAIR. If the question asks about enhanced duties, loyalty, or confidentiality, that's CARE (client). If it's about basic fair treatment without special obligations, that's FAIR (customer).

Q: What exam tip applies to this Agency & Professional Ethics question?

Focus on duty levels, not transaction details. Clients = fiduciary duties (loyalty, confidentiality). Customers = fair treatment only. Ignore payment methods, agreement formats, or buyer/seller roles - these don't determine relationship type.

Q: How does this Agency & Professional Ethics concept apply in real world practice?

A registrant shows properties to two buyers. Buyer A signs a Buyer Representation Agreement, becoming a client entitled to loyalty, confidentiality, and full disclosure of property defects. Buyer B tours properties without signing agreements, remaining a customer who receives fair treatment and honest answers but no confidential market advice or negotiation advocacy. When both want the same property, the registrant can advocate only for the client while treating the customer fairly.

Question

Agency & Professional EthicsClient Vs Customer DutiesEASY

Which of the following best describes the difference between a client and a customer in real estate?

Answer Options

A

A client pays fees while a customer does not

B

A client has a written agreement while a customer has a verbal agreement

C

A client receives fiduciary duties while a customer receives fair and honest treatment

D

A client buys property while a customer sells property