Customer
The party on the other side of a transaction, who is not represented by the broker but is still owed honesty and material-defect disclosure.
A customer is a party the license holder does not represent. A customer is owed honesty and fair dealing, and known material defects about the property must still be disclosed. What a customer is not owed is the representation-based duties that a client receives.
A license holder may be courteous to a customer, answer their questions, show them property, and supply factual information without creating representation. None of that converts a customer into a client.
On the exam
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Tested in
Texas Agency & Intermediary (9% of the exam)
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- Client
The party a broker represents in a transaction, owed the duties that come with representation.
- Material Defect
A known defect in a property's condition that must be disclosed, and which confidentiality does not cover.
- IABS (Information About Brokerage Services)
The TREC notice required at the first substantive communication about a proposed transaction involving specific real property.
Sources
This definition is Texas real estate exam-prep education, not legal, tax, or professional advice. Verify current rules against the official source before relying on them for a real transaction. Back to the full glossary.