Final answer:
Without a buyer representation agreement, the buyer is considered a customer to the broker, not a client. The broker assists the buyer but does not owe them fiduciary duties like they would in a client relationship.
Step-by-step explanation:
If a buyer and broker do not sign a buyer representation agreement, then the buyer will serve as a customer to the broker. Without a formal agreement, the broker does not have the fiduciary duties that come with a client relationship.
In real estate, a buyer representation agreement is a contract that establishes a formal relationship between the buyer (the principal) and the real estate broker/agent, requiring the broker to act in the best interests of the buyer and provide confidential advice. Without this agreement, the broker may still assist the buyer in finding property, but their allegiance is generally towards the seller from whom they will receive a commission.
The example provided regarding agents and actors can be analogous to the real estate context. In both cases, representatives (agents or brokers) have the role of connecting their customers (actors or property buyers) with third parties who have the potential to fulfill their needs (casting directors or property sellers).