Wisconsin Real Estate Sales Practice Exam

In a transaction where the licensee writes an offer for a buyer on their own listing, who is the buyer?

1. Agent

2. Customer

3. Client

4. Seller

The correct answer is: Customer

In the context of the question, the correct answer is that the buyer is considered a customer. When a licensee represents both a buyer and their own listing simultaneously, the buyer does not become a client of the licensee unless there is a written agreement to establish that agency relationship. Instead, the buyer is regarded as a customer, which signifies that they are seeking services from the licensee without the formal representation and fiduciary duties that come with being a client. This distinction is important in real estate transactions because it emphasizes the nature of the relationship between the licensee and the buyer. A customer does not receive the same protections or full level of service that a client would, and the licensee must be careful to provide ample disclosure and maintain ethical practices throughout the transaction. Understanding the difference between a customer and a client is critical in real estate practice, especially in scenarios involving dual agency, where the licensee must navigate the complexities of representing both parties fairly. A client, by contrast, would imply that there is an exclusive agency relationship, typically involving a signed buyer's agency agreement, which is not the case in this situation.