What distinguishes a client from a consumer in real estate?

In real estate, the distinction between a client and a consumer is significant and is primarily based on the nature of the relationship established with the real estate professional. A client is defined as an individual who has entered into a formal agreement with a licensed real estate broker, which establishes a fiduciary relationship. This means that the broker has a legal obligation to act in the best interests of the client.

When a client is represented by a licensee, the broker is tasked with advocating for the client’s interests, providing advice, negotiating on their behalf, and ensuring that they receive the full benefit of the broker's expertise. This relationship moves beyond mere information sharing, which is typically what a consumer receives. Consumers may seek general information or assistance but have not entered into a contract that obligates the licensee to prioritize their interests.

The other options might suggest characteristics or conditions associated with clients but do not accurately capture the essential difference between a client and a consumer. Being a buyer or paying fees are not defining features of a client's status, nor is signing a contract an absolute requirement under all circumstances but is a common aspect of formalizing the relationship. The necessary feature that clearly delineates a client’s status is this established representation by a licensed broker, which provides legal protections