Who is considered the agent in an agency relationship?

In an agency relationship, the agent is defined as the individual who has been hired to act on behalf of the principal. This relationship is foundational in real estate transactions, as it establishes a fiduciary duty where the agent must act in the best interest of the principal. The agent is empowered to make decisions, negotiate terms, and execute agreements that are intended to benefit the principal, who is typically the client seeking representation in a real estate transaction. This role is critical because it highlights the trust and responsibility that exists between both parties, ensuring that the agent is working diligently to fulfill the goals and needs of the principal.

The other roles mentioned in the options provide different perspectives related to real estate but do not accurately reflect the definition of an agent within the context of an agency relationship. For instance, the party who pays a commission may not necessarily be the one acting on behalf of another, and public interest representation or enforcement of laws falls outside the scope of a personal agency relationship.