In an Exclusive Right-to-Buy contract, who is considered the principal?

In an Exclusive Right-to-Buy contract, the principal is considered to be the buyer. This type of agreement is established between the buyer and the broker, where the buyer grants the broker the exclusive right to represent them in a property purchase. The buyer takes on the role of the principal because they are the party in charge of making the purchasing decisions, and they are the ones who ultimately engage the broker's services to find and negotiate a deal on their behalf.

In this context, the broker acts as an agent for the buyer, meaning the broker is tasked with advocating for the buyer's interests during the transaction. The seller, while involved in the overall real estate process, is not the principal in this contract as the agreement does not specifically pertain to their involvement. The lender may provide financing options but does not play a direct role in this contract, further confirming that the buyer is the principal in an Exclusive Right-to-Buy agreement.