Who has the right to sue agents for monetary compensation?

The principle of a transaction holds the right to sue agents for monetary compensation because they are the individuals who are directly impacted by the agent's actions and decisions in the course of a real estate transaction. The principal is typically the client who has engaged the services of the agent to represent their interests. This creates a fiduciary relationship where the agent owes duties, such as loyalty and full disclosure, to the principal.

If the agent fails to fulfill these duties, acts negligently, or causes financial harm through misconduct, the principal can seek compensation for any losses incurred due to the agent's actions. The relationship between the principal and the agent is fundamentally guided by the agreement they have, which usually outlines the rights and expectations of both parties. Therefore, if the principal believes the agent has breached this agreement, they are within their rights to take legal action to recover damages.

In contrast, other entities such as clients not directly involved, fellow agents, or local real estate boards do not have the same direct contractual relationship with the agent, thus limiting their standing to pursue monetary compensation in such cases.