Who does an agent represent in a real estate transaction?

In a real estate transaction, the agent typically represents the principal, which is the person who employs the agent to act on their behalf. This is often the seller in a listing agreement or the buyer in a buyer's representation agreement. The principal is the individual who grants authority to the agent to negotiate and make decisions related to the transaction, making it the core relationship in the agency.

It's important to understand that the agent's duty is to act in the best interest of their principal, ensuring that the principal's needs and objectives are prioritized throughout the process. This fiduciary relationship involves obligations such as loyalty, confidentiality, and full disclosure to the principal.

While the agent may communicate with both the buyer and seller during a transaction, they are specifically working for the interests of the principal. The other options refer to roles that do not have the same nature of representation. For example, while an agent may interact with the inspector or facilitate conversations between the buyer and seller, these individuals are not represented by the agent in the same legal capacity that the principal is.