What does the term "agent" refer to in the context of real estate transactions?

In the context of real estate transactions, the term "agent" specifically refers to a person authorized to act on behalf of another, usually in transactions. This definition is crucial as it encapsulates the relationship between the agent and their client, which is typically established through a listing agreement or representation agreement. The agent is responsible for representing the client's interests, negotiating on their behalf, and facilitating the process of buying or selling real estate.

This role is critical because the agent uses their expertise in the real estate market and knowledge of laws and regulations to guide the client through complexities, ensuring that the transaction is advantageous and compliant with applicable rules. In this context, the agent is empowered to make decisions and take actions, such as offering and counter-offering on properties, which are aligned with the goals of the person they represent.

Recognizing this role helps in understanding broader real estate principles, including fiduciary duties and the importance of agency relationships in ensuring that clients receive fair representation in their transactions.