What is a principal in a real estate transaction?

In a real estate transaction, the term "principal" specifically refers to the main parties involved in the transaction—namely, the buyer and the seller. These individuals or entities are the ones directly engaged in the deal, negotiating the terms, and ultimately responsible for the completion of the transaction.

Buyers and sellers hold significant roles; the buyer is seeking to acquire property, while the seller is offering the property for sale. Their agreement on essential aspects like price and conditions is fundamental to executing a contract.

While the other options refer to important roles within the real estate framework, such as brokers, lenders, or assistants, they do not embody the primary parties who are directly responsible for the sale or purchase of the property itself. Thus, the correct definition of a principal is indeed the buyers or sellers in a transaction.