When you work with a real estate licensee, be sure to ask this question. It may not seem to be much of a difference between the two. After all, both terms mean you are looking for a home, and the realtor is supposed to help you in your search.

However, when you are looking to buy a home, you need to decide which relationship you would like to have with the realtor.

In order to make an informed decision, you should discuss the following information with any agent you're thinking about working with.

The Customer

A customer is a person who seeks to purchase real estate, but who has NOT established an agency relationship and is NOT represented by an agent. A customer can expect the salesperson to provide honest information but cannot expect the salesperson to act as an agent or to negotiate the best price in a purchase. A real estate licensee is also obligated by law to treat customers honestly, to disclose known material facts about the property, and to promptly present all offers to the seller.

The Client

A client is a person who establishes an agency relationship with and agrees to be represented by an agent in a real estate transaction.

A buyer becomes a client of a real estate company by requesting through a licensee that the company be the buyer's agent. This arrangement must be in writing and must clearly establish the obligations of both the buyer and the agent.

The Agent

An agent is the licensee who, at your direction, acts for and represents you, above all others, as his or her client. In North Carolina, once an agency relationship is created, the broker-in-charge of the company is considered to be the agent of the client, and all licensees within the company become sub-agents of the broker-in-charge representing the same client.

Acting on your behalf, an agent in a real estate transaction will negotiate the best price and terms for you. An agent owes utmost loyalty to you, the client, and must convey to you any information he or she knows that might influence your decision to buy or sell.

The Dual Agent

In certain circumstances, which should be explained to you by the licensee, an agent may represent the buyer and the seller in the same transaction, provided each has consented in writing prior to the transaction. This arrangement is called dual agency since one agent represents both parties and both remain clients of the company.

Working with a dual agent is not the same as having your own agent. For instance, when representing both a buyer and a seller, 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.

It is important that you discuss this with the licensee in order to understand the limits of services that a dual agent can provide and to determine whether you want to modify a relationship that you may have established.

Do you want to be a customer or a client?

Do you want to receive services (customer) or be represented (client)? If you are not sure, discuss your options with the real estate licensee with whom you are working. It is your choice and you need to decide whether you will hire an agent or be self-represented. At your discretion, it may be advisable for you to obtain legal or other professional advice in connection with a transaction. It is your continuing responsibility to protect your own interests.

To see the actual text of the Acknowledgment of Agency Disclosure that is used by all real estate agents in North Carolina, please email us your name and e-mail address and we will send it to you.