What is a person who authorizes another to act on their behalf called?

The correct answer is that a person who authorizes another to act on their behalf is referred to as a principal. In legal and real estate contexts, the principal is the individual who grants authority to another person, known as the agent, to perform certain duties or make decisions on their behalf. This relationship is foundational in many transactions, including real estate, where the principal relies on the expertise and actions of the agent to facilitate buying, selling, leasing, or managing property.

Understanding the principal-agent relationship is crucial for anyone in the real estate profession. The principal maintains ultimate control over the actions taken by the agent and is responsible for decisions made during the transaction. In scenarios involving agency agreements in real estate, clear communication between the principal and agent is vital for ensuring that the intent and objectives of the principal are effectively represented and executed.

While the other terms mentioned may have their own meanings, they do not fit the context of someone who authorizes another to act on their behalf in the way that 'principal' does in agency relationships. For example, an agent is someone who acts on behalf of the principal, while a proxy refers more typically to someone authorized to vote or act on behalf of someone else in a specific context, particularly within corporate governance. An attorney