A party in a real estate transaction who is not represented by an agent but is still owed honesty and fair dealing.
Why Customer matters on the exam
This term belongs to Agency. The questions below are real items from Freehold's bank that use it - each one cites its source.
Exam questions using Customer
Every Freehold question shows why the right answer is right — and cites its source.
State license laws commonly require brokers to retain transaction files for:
Typically six months, as most state license laws provide
A period specified by state law, commonly several years
No fixed period at all; brokers may destroy files immediately after closing
Only as long as the client remains an active customer
Show answer & explanation
A period specified by state law, commonly several years — Retention periods are set by individual state law and commonly span several years, so brokers must check their specific state's requirement rather than assume a single national rule.
Source: PSI National Real Estate Exam Content Outline — Broker Supplement
Which of the following most accurately distinguishes a broker's role from an appraiser's role in valuing property?
Brokers and appraisers hold identical state licensing requirements and produce fully interchangeable formal valuation reports for lenders
Only a licensed or certified appraiser may ever discuss a property's value with a client or a customer
A broker may offer a price opinion based on market knowledge, while an appraiser follows a separate licensing and professional standards framework for formal valuations
Brokers may never under any circumstances discuss the asking price or the likely final sale price of a listed property with the seller who originally hired them for the listing
Show answer & explanation
A broker may offer a price opinion based on market knowledge, while an appraiser follows a separate licensing and professional standards framework for formal valuations — Brokers can offer informed price opinions based on market expertise, but formal, regulated appraisals fall under a distinct appraiser licensing and standards framework.
Source: PSI National Real Estate Exam Content Outline — Broker Supplement
In a single agency transaction, the party the broker does NOT represent is typically treated as a:
Customer, owed honesty and fair dealing but not full fiduciary duties
Client, owed the identical fiduciary duties owed to the party the broker actually represents
Subagent of the represented party, bound by the same fiduciary obligations that party's agent owes
Co-principal jointly and severally responsible alongside the represented party for the transaction
Show answer & explanation
Customer, owed honesty and fair dealing but not full fiduciary duties — The unrepresented party in a single agency transaction is a customer, entitled to honesty and fair dealing, but not the fiduciary loyalty and confidentiality owed to a client.
Source: PSI National Real Estate Exam Content Outline §5 General Principles of Agency
Freehold is an independent study resource and is not affiliated with, endorsed by, or sponsored by PSI, Pearson VUE, or any state real estate licensing board or commission. Freehold does not guarantee passage of any licensing exam.
