October 26th, 2011 at 12:02 am

We have had numerous calls lately about situations where our agents have been signing documents for their clients. It is not normally the purchase agreement, a counter offer or the like. Rather, it is a document typically deemed “less important,” like the contract with the inspection company or the request for repairs. When asked why they signed on their clients behalf, we typically here that the client was not available and it was just “easier” to sign for them. After all, it was just an inspector’s agreement and therefore not such a big deal, right?

In truth, signing any document for your client can be a big deal. For example, what if the inspector misses something in an inspection that you signed for; does the buyer have a claim against him? Given the fact that the buyer has no enforceable contract with the inspector, the answer may be no. After all, you signed the contract, without enforceable authority to do so, and the inspector could therefore claim that he had no contractual obligation to the buyer. Similarly, if you sign a request for repair, the buyer could claim that you asked for only part of what she wanted and therefore demand that you pay for some extra repairs. By having the client sign these documents, you ensure that they know what is
being done, what is being asked for, and cannot come back later and say you made a mistake.

One easy way to avoid this problem is to use Docusign, or a similar product in your transactions. By doing so, you can upload any document to the system and e-mail it to your client for signature. That way, even when the client cannot meet you, they can read and sign all necessary documents, thereby providing you with the protection you need. Further, we have found that using Docusign typically results in the other party returning signed documents to us more quickly and regularly. As a result, in addition to making sure your client signs everything, it provides the added benefit of improving the quality of our files.

So, make sure you don’t sign anything on behalf of your clients. I know you are trying to be helpful, but in truth, such conduct may have negative legal implications for everyone. And, if you want to make the process as easy as possible, use Docusign or some other online signature product. It will make the whole process easier for both you and your client.

As always, let us know if you have any questions.

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