Who is considered the client in an agency relationship?

Who is considered the client in an agency relationship?

• A. Agent
• B. Principal
• C. Customer
• D. Broker

Answer: (B)

In an agency relationship, the principal is considered the client. The principal is the person who hires the agent to act on their behalf, granting the agent the authority to represent their interests in a transaction. This relationship is foundational in real estate, as it defines the responsibilities and obligations between the agent and the principal. The agent is the individual who represents the principal in dealings with third parties but is not the client themselves. The customer refers to a party that may interact with the agent’s services but does not have the same legal standing or fiduciary relationship. A broker, while it can represent clients and may operate as an agent, is typically a real estate professional who oversees agents and transactions, rather than being the principal themselves. Hence, in the context of an agency relationship, the principal is the one who receives the representation and services from the agent.

In an agency relationship, the principal is considered the client. The principal is the person who hires the agent to act on their behalf, granting the agent the authority to represent their interests in a transaction. This relationship is foundational in real estate, as it defines the responsibilities and obligations between the agent and the principal.

The agent is the individual who represents the principal in dealings with third parties but is not the client themselves. The customer refers to a party that may interact with the agent’s services but does not have the same legal standing or fiduciary relationship. A broker, while it can represent clients and may operate as an agent, is typically a real estate professional who oversees agents and transactions, rather than being the principal themselves. Hence, in the context of an agency relationship, the principal is the one who receives the representation and services from the agent.