In a real estate transaction, who is referred to as the client of a broker?

In a real estate transaction, the term that refers to the client of a broker is "Principal." The principal is the person or entity that has engaged the services of the broker, often through a listing agreement or other contractual relationship. This individual or organization is the one who the broker represents and owes fiduciary duties to, such as loyalty, confidentiality, and full disclosure.

The other terms play different roles in real estate transactions. An agent is typically someone who acts on behalf of the broker, representing either the buyer or the seller in the transaction. An investor refers to someone who purchases property, often for investment purposes, but does not necessarily imply a agency relationship with a broker. A stakeholder generally refers to a party that has an interest or investment in a particular transaction, which may include the buyer, seller, or even a lender, but does not specifically identify the broker's client in the context of representation.

Understanding the distinction of "Principal" is crucial for recognizing the responsibilities and legal obligations a broker has towards their clients in real estate dealings.