In a listing agreement, who is referred to as the principal?

In a listing agreement, the principal refers to the seller who has entered into a contractual relationship with a broker to market and sell their property. This designation is important because it highlights the seller's role as the main party in the agreement, giving them the authority to direct the broker on how to proceed with the sale. The broker, acting as an agent, has the responsibility to represent the interests of the principal, ensuring that the property is marketed effectively and that the seller's needs and preferences are prioritized throughout the process. This relationship forms the basis of the fiduciary duty between the broker and the seller, emphasizing trust and loyalty. The other options do not correctly identify the principal in this context: the buyer is not involved in the listing agreement, the broker serves as the agent and does not hold the status of a principal, and the appraiser's role is separate and unrelated to the contractual obligations within a listing agreement.