What is another term used for a principal in a real estate context?

In real estate, the term "principal" typically refers to the individual or entity that has a vested interest in a transaction, often being the buyer or seller of a property. The term "client" is frequently used interchangeably with "principal," especially in the context of an agency relationship. The client is the party that engages the services of an agent or broker for assistance in navigating real estate transactions.

Understanding this relationship is crucial because it establishes the responsibilities and obligations that an agent has toward the client, such as loyalty, confidentiality, and full disclosure. The term "client" encapsulates the role of the principal who seeks representation, making it the appropriate term in this context.

While "broker," "agent," and "customer" may relate to real estate transactions, they do not refer to the principal's role directly. The broker is typically the professional licensed to conduct real estate transactions, the agent acts on behalf of the principal (client), and "customer" generally refers to someone who engages with a real estate professional but is not formally represented.