What relationship exists between a broker and the client they represent?

The relationship that exists between a broker and the client they represent is known as a client-agent relationship. In this context, the broker acts on behalf of the client, providing services and advice in the interest of the client’s needs and objectives. This is a fiduciary relationship, which means the broker has a legal and ethical obligation to act in the best interest of the client, maintaining loyalty and confidentiality.

This client-agent dynamic is foundational in real estate and agency law, where the broker must prioritize the client's interests over their own. This includes tasks such as negotiating terms, managing offers, and providing vital information about the transaction process.

Understanding this relationship is crucial for recognizing the broker's responsibilities and the protections afforded to the client. The terminology is specific; the terms of 'independent contractor,' 'transactional,' and 'vendor-client' do not accurately capture the fiduciary duties and obligations that define the broker-client relationship.