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.
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.
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”.