Who is considered a client in an agency relationship?

In an agency relationship within real estate, a client is defined as a party who has entered into a formal agreement with a real estate brokerage, establishing a legal and fiduciary relationship. This relationship obligates the agent to act in the best interests of the client, providing services while following the client's instructions and protecting their interests throughout the transaction process.

A party with a relationship to a real estate brokerage means they have engaged that brokerage to represent them in their real estate activities, thus qualifying them as a client. This contrasts with other options that describe parties not actively engaged in that formal relationship. For instance, individuals not involved in the transaction, random buyers of property, or agents representing the brokerage without a specific client relationship do not fit the definition of a client. Their roles do not entail the same responsibilities and obligations that define an agency relationship, where the agent is legally bound to serve the client's best interests.