In a buyer agency situation, how does the broker represent the buyer?

In a buyer agency situation, the broker represents the buyer as a client. This is significant as it establishes a formal agency relationship where the broker has a fiduciary duty to act in the best interests of the buyer. This relationship includes providing advice, loyalty, and full disclosure, ensuring that the buyer's needs and preferences are prioritized throughout the purchasing process.

Being a client means the buyer receives a higher level of service compared to being treated merely as a customer, where the broker would have limited obligations. The distinction is crucial in real estate transactions, as the client-broker relationship allows for confidentiality and the broker working diligently on behalf of the client's interests, such as negotiating better purchase terms.

Furthermore, representing the buyer as a principal would imply that the buyer has full control of the transaction without assistance from the broker, which does not align with the concept of buyer agency. Similarly, the role of a trustee is more associated with fiduciary responsibilities in other types of relationships and does not apply to the standard buyer-broker dynamic. Thus, classifying the buyer as a client underlines the supportive and advisory nature of the broker's role in this context.