Who is considered a "Principal to a transaction" according to Virginia real estate law?

A "Principal to a transaction" in Virginia real estate law refers to the individuals involved in a real estate transaction who have a direct interest in the property being bought or sold. This typically includes the buyers and sellers of the property, as they are the ones manipulating the asset and making decisions that affect the transaction's outcome.

In this context, the buyer is seen as a principal because they are the party looking to acquire the property and are directly involved in negotiating terms, making offers, and ultimately completing the purchase. This establishes a legal and financial responsibility and interest in the real estate being transacted.

The other roles, such as the selling broker or listing broker, do not qualify as principals. They serve as intermediaries facilitating the transaction between buyers and sellers but do not have an ownership interest or personal stake in the outcome of the sale. An appraiser, too, is a professional engaged to provide a value opinion on the property but does not participate as a principal in the transaction itself.