Final answer:
In real estate, the person being represented by the agent is known as the client or principal, and can be either the seller or buyer. The agent is responsible for protecting the client's interests in property transactions.
Step-by-step explanation:
In the context of real estate, agency refers to the relationship where the real estate professional represents a client in property transactions. The person being represented is typically known as the client or principal, and this can be either the seller or buyer in a real estate deal. The agent's role is to act in the best interests of their client, offering professional advice and services to ensure the client's property rights and interests are protected. The right to enter into contracts concerning real estate is an essential aspect of property ownership, as individuals or firms must be the rightful owners to legally engage in such agreements.