Customer vs. Client
By Jim Palmer Jr.

Lately I’ve noticed a huge lack of quality in customer service in most retail establishments. Is it just me, or has there been a dramatic lapse in that category of human interaction in the past few years? Maybe the government isolation mandates that were inflicted upon us during the Covid Pandemic have caused us to abandon our people skills? When you walk into a retail store you expect to be greeted and treated with kindness, but nowadays that cordial treatment seems rare.

Even though real estate is similar to retail sales in a few ways, it is quite different in many ways. While Brokers have a statutory duty to deal honestly and in good faith to any customer, they are not obligated to continue to provide services as if that person was a client. Nonetheless, their Code of Ethics ideal is to treat each customer by the Golden Rule as if they will become a client in the future. Once a customer (potential seller or buyer) has created a contract with a Realtor® to pay for specific real estate services that (according to Agency Law) must be delivered with reasonable skill and care, they become a client.

Since the transfer of real property has many legal ramifications, it is obviously much different than the relationship a customer has with a grocer or other retailer. Unlike a retailer, a Realtor® is required by law to maintain a valid real estate license and participate in ongoing education requirements. They cannot be a felon, must be at least 18 years of age and they must be fingerprinted in order to work as a real estate licensee. Even after a successful closing, the broker is obligated to an ongoing duty of confidentiality since they are often privy to confidential information in the course of their duties. These duties are created by state statute and are serious legal responsibilities.

And yet, some of the buying public continues to treat Realtors® as if they were a perky retail clerk at their beckon call, when the reality of an agency relationship is much different than that. Most real estate companies provide a licensed agent who field calls during the working hours of their office. This practice might give the impression that brokers play a role similar to a retail clerk because they heartily court the customer to see if a client relationship will blossom.

Even though it may not be immediately clear to the consumer whether they are a customer or a client they shouldn’t expect to receive client-level-service until that relationship is clarified in writing.