When we are in a client relationship it is referred to as “representation”. There are a few points to stress about representation :
Point 1 : The client relationship is with the brokerage not the sales person. Individual reps are no longer called “agents”, the brokerage is the agent.
Point 2 : Being a Client is the highest form of relationship with the brokerage. The second highest is Customer Service, to be covered in a separate blog.
Point 3 : The client is entitled to full disclosure of all relevant facts known by the sales representative. For example we must disclose to our clients everything we hear with respect to the other party’s motivation, how much/ what terms they might accept, and anything else that might assist the client in the transaction. Conversely we must not disclose any of those things that relate to our client without their express consent.
Point 4 : Representation trumps customer service. Clients enjoy a higher level of service than customers.
Point 5 : There are limits to representation services – representatives must be truthful and not misleading to all parties and must disclose certain material facts about a property or investment. Representatives cannot do anything illegal or unethical even if their client directs.