What is the term for the client in a real estate agency relationship?

In a real estate agency relationship, the term "principal" refers to the client. This is the individual or entity who authorizes the agent (or broker) to act on their behalf in a specific transaction or series of transactions. The principal holds the ultimate decision-making authority and can be either a buyer or a seller in real estate deals.

Understanding the role of the principal is vital because it establishes the foundational relationship wherein the agent or broker is expected to represent the interests of the principal effectively and ethically. This distinction is essential in real estate transactions, as it delineates responsibilities and expectations from the outset.

Other terms like "broker" and "agent" refer to the professionals engaged in real estate transactions, with the broker typically overseeing agents, while the agent works directly with clients. The term "buyer" specifies a particular client type but does not encompass all potential principals, such as sellers or landlords. Thus, "principal" as the correct term captures the broad client relationship in a real estate context.