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6 paź 2021 · In this glossary, you’ll find commercial real estate lease terms, commercial real estate loan terms, commercial real estate finance terms, and other important commercial real estate terms and definitions.
In real estate, a principal refers to the person with the legal authority to enter into a contract, such as the buyer or seller in a transaction. The principal can also be a real estate agent or broker who runs an agency or manages it on behalf of the owner.
13 lis 2023 · In real estate, the principal could also refer to a party (the buyer or seller) who has authorized an agent to act on his or her behalf. It could also refer to the managing broker in a brokerage, or the individual who’s ultimately legally responsible for overseeing transactions.
A principal in real estate refers to an individual or entity responsible for overseeing the purchase, sale, lease, or development process. The role of a principal in real estate is significant, as they are responsible for making key decisions related to property transactions.
In simple terms, the principals in a real estate sale transaction would be the buyer and the seller. In the case of an escrow account, the principals would be the parties who give instructions to the escrow holder.
Real estate entities obtain real estate either by acquiring, constructing or leasing property. Property used for the purpose of earning rentals is classified as investment property under IAS 40.
