Question:
Do you sign the new buyers up as clients or customers?
Answer:
“Customers” is a difficult concept to explain. Most of the time the consumer cannot explain it back to you. That’s certainly a problem going forward.
In Court, the consumer doesn’t know how to describe it and quite frequently neither does the “agent”, who of course, isn’t really an “agent”, they just go by that name and respond to the question affirmatively, when asked if they are an agent. But, we all know, that’s not really true.
So, if you can explain it, go ahead and use it. I often have two customers, seller and buyer but I ensure that their respective lawyers sign off on the relationship.
As we go forward this relationship, since the early 1990’s will come to an end, and will be replaced by “self-representation”., a concept which seems easy to understand, right from the outset. This change is rather long overdue.
UPDATE: Since TRESA was introduced “customers” were eliminated. The legislation came into force on 1 December 2023, and eliminated all customner relations by 31 March 2024.
You can still double end, but both the Buyer and the Seller must be clients, and both must agree to this arrangement.
Brian Madigan LL.B., Broker