Be a Client, Not a Customer – Buyer Representation Explained…

Buyer Representation Contract.1At the present time in Minnesota home buyers (principals) who choose to work with me can either be my client(s) or my customer(s). A principal who has signed the adjacent contract is a CLIENT; a party who is not under contract is a CUSTOMER.  What difference does it make?  Under the law you are owed the following fiduciary duties: Loyalty, Obedience, Disclosure, Confidentiality, Reasonable Care, and Accounting if you are my client. Click here and see page 2 for expanded definitions of these terms. If I assist you without a written representation contract, I don’t owe you any of the above fiduciary duties, except confidentiality and any other duties required by law or contained in a separate written facilitator agreement.  From my perspective, it really doesn’t matter whether you are my client or customer – you will be treated in the same professional way in either case.  On the other hand, it seems to me that being a client offers the assurance that my legally defined fiduciary responsibilities to you will be carried out with certainty.  I should also add that I always stipulate in writing that the buyer representation contract can be cancelled at any time with written notice, so being locked into a business relationship that isn’t working will not happen.

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