Tennessee Realtor State Practice Exam

In a transaction where you are the seller's agent, how would you best describe Tira Miller's relationship to you?

1. Client

2. Customer

3. Associate

4. Principal

The correct answer is: Client

In the context of a real estate transaction, when you are the seller's agent, Tira Miller is best described as your client. This relationship is established through a formal agreement, typically a listing agreement, where the agent (you) represents the seller (Tira) in the sale of their property. As a client, Tira has certain rights and expectations, including confidentiality, loyalty, and full disclosure from you as their agent. The distinction between a client and a customer is important; a customer does not have a formal agreement with the agent and generally receives limited services. Conversely, a client relationship involves a fiduciary duty, meaning you are legally and ethically obligated to act in Tira's best interests throughout the transaction. In this capacity, you are tasked with advocating for and protecting Tira's interests, distinguishing the client relationship from that of a mere customer or associate.