Broker Chen at Madison Realty represents the seller of a home. Buyer Patricia contacts Chen directly and asks to see the property without signing any agency agreement. Chen shows Patricia the property and writes an offer on her behalf. Under Wisconsin Administrative Code REEB 24, what is Patricia's agency status in this transaction?
Correct Answer
A) Patricia is a customer because she has no signed agency agreement with Chen
Under Wisconsin law and REEB 24, a party becomes a client only when there is a written agency agreement establishing that relationship. Since Patricia has not signed a buyer agency agreement with Chen, she is a customer — not a client. Chen owes her the duties outlined in the Disclosure to Customers form, not full fiduciary duties.
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Related Topics & Key Terms
Key Terms:
Related Concepts
A practice where the agent or brokerage represents only one party in a transaction — either the buyer or the seller, but never both.
A relationship where a listing broker authorizes other brokers to act as agents of the seller, extending the seller's agency relationship to cooperating brokers.
A non-agency relationship where the broker facilitates a real estate transaction without representing either party, owing limited duties of honesty, fairness, and competence to both.
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