Definition: Principal has two common real estate meanings: the amount borrowed or still owed on a loan, excluding interest; and the person an agent is authorized to represent in an agency relationship.
Example
On a $200,000 loan, a $500 principal payment reduces the unpaid principal to $199,500. Separately, a seller represented by a single agent is that agent’s principal.
Keep the distinction clear
Use the context. A loan question concerns money owed; an agency question concerns a represented person. A Florida transaction broker provides limited representation rather than a single agent’s fiduciary relationship.
Related terms
Interest · Single Agent · Transaction Broker
Keep studying
Buyer Agreements and Florida Agency
References: CFPB mortgage terms · Florida Statutes §475.278
Pronunciation (US): PRIN-suh-puhl (capitals show stress)
Pronunciation reference: Merriam-Webster
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