Who is considered the client in a real estate agency relationship?

In a real estate agency relationship, the client is identified as the party represented by the agent, which typically is the buyer or seller involved in the transaction. This relationship is defined by the agency agreement that establishes the agent's duty to act on behalf of and in the best interests of the client.

The agent serves as a facilitator and advisor within this relationship, guiding the client through the nuances of the real estate transaction, but it is the buyer or seller that holds the client status. This ensures that the agent is obliged to maintain loyalty, confidentiality, and full disclosure in favor of the client, which are core tenets of agency law.

By comparison, the lender and the property inspector do not hold the same fiduciary responsibilities and are not parties to the agency agreement; instead, they are typically service providers involved in the transaction for specific functions. Understanding the dynamics of the agency relationship is crucial for recognizing the roles and responsibilities of each party involved.