Tennessee Realtor State Practice Exam

What is the relationship between an agent and a customer?

1. Agent to client

2. Agent to customer

3. Agent to colleague

4. Agent to partner

The correct answer is: Agent to customer

The relationship between an agent and a customer is characterized as an agent to customer dynamic. In this context, the agent provides services to the customer, who is a party seeking assistance in a real estate transaction, but without a formal contractual relationship that exists between an agent and a client. In situations involving an agent and a customer, the agent typically has a lower level of responsibility compared to their obligations toward clients. The agent's role primarily involves providing information and guidance, but they do not owe the same fiduciary duties, such as loyalty or full disclosure, to the customer as they would to a client. This distinction is essential in real estate practice, as it informs the nature of the interactions and the level of care that the agent is required to uphold when dealing with customers. Understanding this type of relationship is crucial for agents, as it helps them navigate the boundaries of responsibility and the expectations involved in their professional engagements.