Which term refers to a person or entity that does not hold an agency relationship with a brokerage?

The term that refers to a person or entity that does not hold an agency relationship with a brokerage is "Customer." In the context of real estate, a customer is typically someone who is interested in buying or selling property but does not have a formal agency agreement with a brokerage.

Customers may receive certain services from a brokerage, such as information and assistance, but they do not have the same level of representation and fiduciary duty that clients enjoy. Clients, on the other hand, have entered into an agency relationship, meaning their broker owes them specific duties, including loyalty and full disclosure.

A designated agent refers to a specific broker or salesperson assigned to represent a client within a brokerage. The term "principal" generally refers to the main party in a transaction or agreement, but it does not specify the lack of an agency relationship in the way that "customer" does. Thus, "Customer" is the most appropriate term to describe someone who is not in an agency relationship with a brokerage.