Under Wisconsin's agency framework established by REEB 24, which of the following best describes the legal relationship between a Wisconsin real estate broker and a 'customer' (as opposed to a 'client')?
Correct Answer
B) The broker owes the customer only the duties of honesty, fairness, and disclosure of material adverse facts
Under Wisconsin Administrative Code REEB 24 and Wisconsin Statutes Chapter 452, a 'customer' is a party to a transaction who has not entered into an agency agreement with the broker. While the broker does not owe a customer the full fiduciary duties owed to a client, the broker does owe every customer the duties of honesty, fairness, and disclosure of material adverse facts about the property. These are minimum statutory duties that apply regardless of agency status.
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Related Topics & Key Terms
Key Terms:
Related Concepts
The fiduciary obligation to protect a client's private information and not disclose it to third parties without permission, surviving even after the agency relationship ends.
In real estate, a client is someone to whom the agent owes fiduciary duties through an agency relationship, while a customer is a third party to whom the agent owes only honesty and fair dealing.
An arrangement where a brokerage assigns separate agents within the firm to represent the buyer and seller in the same transaction, allowing each client to have dedicated representation.
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