Oregon 30-Hour Real Estate Law Practice Test

If Peter does not represent the sellers, what is their relationship to him?

1. Clients

2. Customers

3. Partners

4. Non-clients

The correct answer is: Customers

The sellers’ relationship to Peter, if he does not represent them, is best described as that of customers. In the context of real estate transactions, when an agent represents a party, that party is considered a client. However, if an agent does not have a fiduciary relationship with a particular party in a transaction—meaning they do not provide services to that party—they can be viewed as potential customers. Customers are individuals who engage with an agent’s services but do not have the same level of representation or loyalty as clients. This relationship entails that while Peter may interact with the sellers and provide them with some information or assistance concerning the property, he has no professional obligation to represent their interests exclusively. Therefore, defining the sellers as customers appropriately captures this lack of a formal client-agent relationship. This distinction is crucial in real estate, as it influences the duties and responsibilities of the agent toward each party involved in a transaction.