The term proxy comes from the power of attorney by which the holder of stockholders in a real estate company transfers voting rights to another stockholder. A proxy fight may arise in which groups compete in the gathering of proxies to give them toting control. In many fields, a proxy is an individual legally authorized to act, vote, or sign on behalf of someone else, like an investor, a party, or another entity. Like this, the individual who authorized the proxy is not required to be present when votes are cast.
How does a Proxy Work?
Even if proxy voting is allowed in many businesses, the management team prefers and encourages their shareholders to vote in person. However, when a shareholder is unable to attend a meeting, proxy voting is allowed and accepted so that the voting can take place.
A person can not simply state that they are legally authorized to vote as a proxy for a shareholder. For an individual to be legally authorized to act as a proxy, they require formal documentation that explains the extent to which the proxy can act, speak or vote on someone else’s behalf.
For this, they might even require a formal power of attorney document to have the right to complete particular actions. The shareholder must sign the document to extend the legal authorization to the individual chosen to be their proxy, to vote on their behalf at an annual meeting, for example.
Proxy in Real Estate
In the real estate industry, a proxy can be someone that is legally authorized to speak on your behalf. This type of relationship can occur between a homebuyer and a real estate agent if the buyer is unavailable and the home is scheduled for a home inspection. The real estate agent can act as a proxy and go to the inspection on behalf of the buyer.
Another situation where a proxy can be used in real estate is during auctions. An individual can hire another person to act as a proxy on their behalf if they can not attend the auction in person. The proxy will be told what they are allowed to do, the value they are allowed to offer for each property that the bidder is interested in, and follow any other instructions regarding the auction. Essentially, during an auction, a proxy bids according to your instructions. Even companies offer bidding services, or you can simply work with someone you trust.
For more information regarding this subject, we suggest that you contact a real estate attorney. The information mentioned above is general and should not be considered “legal advice”.
Popular Real Estate Terms
An enticingly attractive initial rate below the market offered in an adjustable rate mortgage. For example, the teaser rate may be offered at 2% below market. A borrower who cannot qualify ...
Relationship between individuals or entities out of which exists a mutual interest. An example is a privity of contract among the contracting parties concerning the actions each are to take. ...
“What is Situs?”, you ask.Situs is a word in Latin that basically means the site or location where something exists or originates. Like most words in latin, situs is usually ...
Association of the owners of all condominium units in a building that is concerned with managing day-to-day matters in the building complex, including the surrounding and enforcing ...
A capitalized expenditure usually extending the useful life of a building or improving it in some manner over and above the original condition. In contrast, a maintenance or repair expense ...
Right to enter and start construction or furnishing property that is in the process of being purchased. ...
If escrow is the legal “moment” where assets are held by a third party (an escrow agent) hired by both the buyer and the seller of goods like real estate and insurance until the ...
People say, in real estate, there's a lot more than meets the eye. If you're connected to the housing market in any way, you've probably heard the term "implicit cost." It sounds fancy, but ...
Loan having the last payment either (1) more than twice the amount of any other payment, or (2) a payment arising from the lenders call provision. The term loan (or straight loan) is a form ...
Have a question or comment?
We're here to help.