{"id":634,"count":1,"description":"\r\nJump to:\r\nWhat is a principal?<\/a>\r\nWhat is a principal broker\/agency principal?<\/a>\r\nUndisclosed Principal<\/a>\r\nWhat is a principal in finance?<\/a>\r\n\r\n\r\nWhat is a principal?\r\n\r\nPrincipal can refer to either:\r\nA. a person who authorizes an agent to act, to create legal relationships with a third party (most important\/senior person in a group\/firm\/agency)\r\nB. an amount that is lent or invested, on which interest is paid\r\n\r\n\r\nWhat is a principal broker\/agency principal?\r\n\r\nIn a real estate agency or brokerage, the principal is the responsible party, also called the managing broker or the qualifying broker. The principal is legally authorized to enter contracts, as well as the person legally responsible for supervising agents employed by or associated with the principal or their agency\/brokerage. The relationship between agents and the Principal is fiduciary and requires the agent to be loyal to the principal.\r\n\r\n\r\nUndisclosed principal\r\n\r\nA practice whereby a major party in a transaction, such as a seller or buyer, retains anonymity by using an agent for negotiations with a third party means there is an undisclosed principal. In this case, the agent pretends to be acting in self-interest.\r\n\r\n\r\nWhat is a principal in finance?\r\n\r\nAnother common use of the term is to refer to an amount of money that is loaned, borrowed or invested and it is separate from interest.\r\nThe principal of a loan \u2014 when making regular payments on a loan, they are usually scheduled so that payments first cover interest charges and then the principal, which is still referred to as such, even if the amount gradually decreases.\r\n\r\nFor example, if you take out a loan of $65,000, the principal is $65,000. After having paid $30,000, the remaining $35,000 is still called \u201cthe principal\u201d.\r\n\r\nThe principal of an investment \u2013 the term can also apply to the original amount that was invested, not including any earnings accrued since.\r\n\r\n\r\nYou might also be interested in:\r\n\r\n \tHow is market value determined?<\/a>\r\n \tHow is yield estimated?<\/a>\r\n \tHow to become a real estate agent?<\/a>\r\n\r\n\r\n\r\nSearch other terms\r\n\r\n\r\n\r\nA<\/a>\r\nB<\/a>\r\nC<\/a>\r\nD<\/a>\r\n\r\n\r\nE<\/a>\r\nF<\/a>\r\nG<\/a>\r\nH<\/a>\r\n\r\n\r\nI<\/a>\r\nJ<\/a>\r\nK<\/a>\r\nL<\/a>\r\n\r\n\r\nM<\/a>\r\nN<\/a>\r\nO<\/a>\r\nP<\/a>\r\n\r\n\r\nQ<\/a>\r\nR<\/a>\r\nS<\/a>\r\nT<\/a>\r\n\r\n\r\nU<\/a>\r\nV<\/a>\r\nW<\/a>\r\nX<\/a>\r\n\r\n\r\nY<\/a>\r\nZ<\/a>\r\n\r\n\r\n\r\nPopular terms\r\n\r\n\r\n\r\nAmortization<\/a>\r\n\r\n\r\nEquity <\/a>\r\n\r\n\r\nNotary Public <\/a>\r\n\r\n\r\nProgression\/Regression<\/a>\r\n\r\n\r\nAcquisition <\/a>\r\n\r\n\r\nAnnuity <\/a>\r\n\r\n\r\nAsset <\/a>\r\n\r\n\r\nFiduciary <\/a>\r\n\r\n\r\nInflation <\/a>\r\n\r\n\r\nContingency <\/a>\r\n\r\n\r\nEscrow<\/a>\r\n\r\n\r\nPower of attorney <\/a>\r\n\r\n\r\nReal Estate Agent <\/a>\r\n\r\n\r\nEminent Domain <\/a>\r\n\r\n\r\nLiability <\/a>\r\n\r\n\r\nStatute of Limitations<\/a>\r\n\r\n\r\nValid <\/a>\r\n\r\n\r\nVariance<\/a>\r\n\r\n\r\nContiguous <\/a>\r\n\r\n\r\nDeficit<\/a>\r\n\r\n\r\n\r\n","link":"https:\/\/www.commercialcafe.com\/blog\/tag\/cre-term-principal\/","name":"Principal","slug":"cre-term-principal","taxonomy":"post_tag","meta":[],"yoast_head":"\nWhat is a Principal? - Commercial Real Estate Dictionary<\/title>\n<meta name=\"description\" content=\"Principal can refer to a person who authorizes an agent to act, to create legal relationships with a third party (most important\/senior person in a group\/firm\/agency) or an amount that is lent or invested, on which interest is paid\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.commercialcafe.com\/blog\/tag\/cre-term-principal\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Principal Archives\" \/>\n<meta property=\"og:description\" content=\"Principal can refer to a person who authorizes an agent to act, to create legal relationships with a third party (most important\/senior person in a group\/firm\/agency) or an amount that is lent or invested, on which interest is paid\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.commercialcafe.com\/blog\/tag\/cre-term-principal\/\" \/>\n<meta property=\"og:site_name\" content=\"CommercialCafe\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"CollectionPage\",\"@id\":\"https:\/\/www.commercialcafe.com\/blog\/tag\/cre-term-principal\/\",\"url\":\"https:\/\/www.commercialcafe.com\/blog\/tag\/cre-term-principal\/\",\"name\":\"What is a Principal? 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