What is the term for an individual authorized to act on behalf of another in real estate?

The term "agent" refers to an individual who is authorized to act on behalf of another person, known as the principal, in real estate transactions. In the context of real estate, the agent represents the interests of the client in dealings such as buying, selling, or leasing property. This relationship is crucial as it establishes a fiduciary duty, meaning the agent must act in the best interests of the principal, maintain confidentiality, and provide full disclosure regarding any relevant issues in the transaction.

In contrast, a broker typically refers to a licensed real estate professional who can operate independently, managing their own real estate firm and employing agents. The principal is the party who grants the authority to the agent and is ultimately the owner of the property or the party interested in the real estate transaction. The owner is simply the individual or entity that holds title to the property and may or may not be the party represented in a transaction.

Thus, understanding the role of an agent is key to navigating the real estate market, as they serve as the intermediary between the principal and potential buyers or sellers.