CUSTOMER OR CLIENT? When you choose to work with an agent, did you know that agent may or may not be "your" agent? An agent owes certain duties to a client but has a different obligation to a customer.  So are you a customer or client?   And what exactly is a dual agent?  Who is a customer? When selling or buying real estate, you may decide you don´t need your own agent.  A customer is someone who does not establish an agency relationship with an agent by signing a representation agreement. By law an agent is obligated to treat customers honestly, to disclose known material facts about the property and to promptly present all offers and counteroffers. Their role is to provide you with market information and general services and assistance you require in order to complete a transaction.   If you are a customer, the agent´s primary loyalty is not to you. If you enter an Open House given by a listing agent, remember that agent is representing the seller.  While you are free to use them, you should understand that you are a customer, and by law the agent´s loyalty lies with the seller.  So, for instance, if you tell the agent that you could offer $10,000 more, the agent has to convey that information to their client, the seller.  Or if you are selling your home by owner, and a buyer´s agent contacts you and you tell them that you need to sell the house and will accept $30,000 less, they are obligated to relay that information to their client, the buyer.  As a customer you cannot expect the licensee to act as your agent or to negotiate on your behalf.  Who is a client? A client is a person who establishes an agency relationship with and is represented by an agent in a real estate transaction. Acting on your behalf, your agent will negotiate for you the best price and terms in a real estate transaction. Your agent owes utmost loyalty to you, and must pass on to you any information he or she knows which might influence your decision to buy or sell. You can rely on your agent to preserve confidential information provided by you. A seller becomes a client of a real estate company by signing a formal listing agreement. A buyer becomes a client by signing a formal buyer agency agreement with an agent and their company. Prior to any transaction the agreement must be in writing and must clearly establish the terms of the agreement and the obligations of both the real estate company which the agent works for and the client. What is a dual agent? In certain situations, an agent may represent the buyer and seller in the same transaction provided each has consented in writing prior to the transaction. This is called dual agency since one agent represents both parties and both remain clients of the company.  It is important that you understand the limits of representation provided by a dual agent. The possibility and consequences of such an occurrence must be explained to you by your agent. Working with a dual agent is not the same as having your own exclusive agent! The dual agent must not disclose to one party confidential information obtained from the other party.  Also, a dual agent may not be the advocate for either party and cannot negotiate for nor advise either as to price or terms Read more about dual agency. Do you want to be a customer or a client? Do you want only to receive information and assistance (customer) or to be represented (client)? To understand your options, discuss this with the agent with whom you are working. It is important that your relationship be established and acknowledged by each party, and you are aware of the services you will be provided. For more information please visit the South Carolina Department of Labor, Licensing and Regulation webpage or you can download their Agency Explanations Brochure at http://www.llr.state.sc.us/POL/RealEstateCommission/RECPDF/AGENCY%20LAW%20BROCHURE05REC2last1.doc2.pdf