Which term describes an individual who is owed fairness and honesty but has no agency relationship with a license holder?

Which term describes an individual who is owed fairness and honesty but has no agency relationship with a license holder?

• A. Client
• B. Customer
• C. Principal
• D. Agent

Answer: (B)

The term that describes an individual owed fairness and honesty, but who does not have an agency relationship with a license holder, is "Customer." In real estate and other fields involving agency relationships, a customer refers to the party who engages with the agent or license holder without establishing a formal agency relationship. This means that while the agent must treat the customer with fairness and honesty, the customer does not have the same level of representation or advocacy that a client, who has a formal agency relationship, would receive. Agency relationships create specific obligations, such as loyalty and full disclosure, protecting the interests of the client. In contrast, the customer is entitled to fair treatment but does not benefit from these fiduciary duties. This distinction is essential to understand the different levels of service and responsibility within such relationships.

The term that describes an individual owed fairness and honesty, but who does not have an agency relationship with a license holder, is "Customer." In real estate and other fields involving agency relationships, a customer refers to the party who engages with the agent or license holder without establishing a formal agency relationship. This means that while the agent must treat the customer with fairness and honesty, the customer does not have the same level of representation or advocacy that a client, who has a formal agency relationship, would receive.

Agency relationships create specific obligations, such as loyalty and full disclosure, protecting the interests of the client. In contrast, the customer is entitled to fair treatment but does not benefit from these fiduciary duties. This distinction is essential to understand the different levels of service and responsibility within such relationships.