In real estate, what type of representative acts on behalf of a principal and must have a license?

In real estate, an agent is a representative who acts on behalf of a principal, usually the property owner or seller, and is required to be licensed to perform these duties legally. This licensing ensures that the agent is knowledgeable about real estate laws, market conditions, and ethical practices necessary to represent clients effectively. The relationship between the agent and the principal is often formalized in a contract, granting the agent the authority to negotiate and make decisions related to the property.

An investor typically buys properties for financial gain but does not represent others in the transaction, while a manager usually oversees properties or real estate operations rather than acting as a representative in transactions. A buyer is the party looking to purchase property and does not represent anyone else in that capacity. Therefore, the definition and responsibilities associated with an agent specifically align with the requirement of acting on behalf of another, adhering to licensing regulations in the real estate field.