Final answer:
The term from the student’s question is 'principal'. A principal is who the agent owes a fiduciary duty to in transactions involving real estate, and this could be a seller, buyer, landlord, tenant, or both. Property ownership is required to legally enter into contracts.
Step-by-step explanation:
The subject in the student's question is referred to as the principal. This term shall mean the person to whom the agent owes a fiduciary duty. This duty is present in relationships involving real estate transactions, whether it's with a seller, a buyer, a landlord, or a tenant. The mentioned term may also include both the seller and buyer or the landlord and tenant, depending on the specific scenario and the nature of the agency agreement. Ownership of property is essential before entering into contracts related to it because it signifies legal authority and responsibility over the property.