What is the role of an individual who has the authority to act on behalf of another in real estate?

In real estate, an agent is an individual authorized to act on behalf of another person, known as the principal, in various transactions, particularly the buying and selling of property. The agent has a fiduciary responsibility to represent the interests of the principal and must adhere to the legal and ethical obligations associated with this role. An agent can negotiate contracts, show properties, and provide market insights, all while ensuring that the principal's wishes and best interests are prioritized throughout the process.

The role of an agent is distinct from that of a broker, who typically operates in a supervisory capacity and may employ agents to work under them. While a consultant can provide advice regarding real estate matters, they do not necessarily have the authority to act on behalf of a principal in the same legally binding way that an agent does. The term principal refers to the individual who grants the agent the authority to act, making the agent the conduit through which the principal's interests are represented in the real estate market.