Can a Client Authority Agreement be signed electronically?

Yes. Under the federal ESIGN Act (15 U.S.C. §7001) and UETA in most states, electronic signatures are legally valid if intent, consent, attribution, and retention are present.

When is notarization required?

Notarization is required when a relying party or statute demands it, such as real estate deeds; many instruments are accepted without notarization unless state law or the third party requires it.

How do I revoke an authorization?

Revoke in writing and deliver the revocation to the agent and all relying third parties; include an effective revocation date and retain proof of delivery.

What identification is acceptable for verification?

Use government-issued photo ID and additional credential analysis for remote notarization; platforms may require SMS, knowledge-based authentication, or multi-factor methods.

How long should I keep executed agreements?

Retain agreements for at least three years after termination; extend retention for HIPAA (six years) or tax-related matters per IRS rules.

Will banks accept an electronically signed agreement?

Many financial institutions accept e-signed agreements if they meet ESIGN/UETA requirements and institutional identity checks; confirm institution-specific procedures beforehand.

Electronic Signature
Templates
HR
Client Authority Agreement

Client Authority Agreement

This template is fully customizable. Edit the text, fill out the fields, and send it for signature. Give it a try!

CLIENT AUTHORITY AGREEMENT

Parties and Effective Date

This Client Authority Agreement is entered into by and between Client Name: and Authorized Representative / Service Provider Name: . Effective Date:

Scope of Authority

The Client appoints the Authorized Representative to act on Client's behalf for the limited HR and recruitment activities described below. The Authorized Representative is authorized to: (check all that apply)

Recruit and present candidate finalists for employment
Negotiate employment offers subject to Client approval
Request and obtain background checks, employment verifications, and reference checks
Facilitate onboarding paperwork and collection of candidate documents
Other:

Limitations and Conditions

The Authorized Representative shall not execute any employment agreement, incur financial obligation, or make commitments on behalf of Client except where expressly authorized in writing. The Representative must obtain Client's written approval prior to extending offers with base salary, bonus structure, or other material terms exceeding Client-specified thresholds.

Personal Information for Candidate Processing

Candidate Full Name:

Address Phone Email

Position Information

Proposed Job Title Department Reporting Manager

Anticipated Start Date: Salary / Compensation:

Employment History (Most Recent)

Employer 1 — Company

Title: Dates Employed:

Responsibilities Reason for Leaving Employer 2 — Company

Title: Dates Employed:

Responsibilities Reason for Leaving

Education

Degree Institution

Graduation Date:

Professional References

Reference 1 Reference 2 Reference 3

Legal Disclosures and Acknowledgements

At-Will Employment Statement: The Client acknowledges that, unless otherwise set forth in a separate written employment agreement executed by the Client, any employment relationship between Client and a candidate presented under this Agreement is at-will and may be terminated by either party in accordance with applicable law.

Equal Opportunity Statement: The Client and Authorized Representative represent that recruitment and selection will be conducted without unlawful discrimination and in compliance with applicable employment laws and regulations.

Applicant Certification and Authorization

I certify that all information provided in this document and any attachments is true, accurate, and complete to the best of my knowledge. I authorize the Authorized Representative and Client to contact prior employers, educational institutions, and references to verify information. I further authorize the procurement of consumer and/or background reports where permitted by law.

Applicant Consent: I consent to the background checks and verifications described above

Confidentiality, Data Protection, and Compliance

The Authorized Representative shall treat all candidate information and Client confidential information as confidential and shall implement appropriate administrative and technical safeguards to protect personal data. The parties will comply with applicable privacy and employment laws in the collection, storage, use, and transfer of personal data.

Term, Termination, and Indemnification

This Agreement commences on the Effective Date and continues until terminated by either party upon 30 days' written notice. Either party may terminate immediately for material breach. Each party agrees to indemnify the other for liabilities arising from its own negligent acts or willful misconduct in performance of this Agreement.

Additional Provisions

Governing Law: This Agreement shall be governed by and construed in accordance with the laws applicable to the Client's principal place of business. Any disputes shall be resolved in the competent courts within that jurisdiction.

Attachments and Notes

Attachments (list any resumes, background consent forms, or offer terms)

Applicant Certification Signature (if applicable)

Applicant Printed Name: Applicant Signature: Date:

Client — Printed Name:

By (Authorized Signature):

Date:

Title / Position:

Authorized Representative — Printed Name:

By (Authorized Signature):

Date:

Title / Position:

What the Client Authority Agreement Is and When It’s Used

A Client Authority Agreement is a written authorization that a client gives to a third party to act on the client’s behalf for a defined set of tasks, usually related to transactions, account access, regulatory filings, or communications. The document names the principal and the authorized agent, describes the scope of authority, sets an effective date and duration, and records any limitations or conditions. It is commonly used by legal counsel, financial advisors, property managers, and vendors to document delegated decision-making and to provide evidence of authority to banks, regulators, and service providers.

Why a Clear Client Authority Agreement Matters

A properly drafted Client Authority Agreement reduces disputes about who may act for the client, clarifies scope and duration of authority, and creates an auditable record for compliance or third-party reliance while preserving the client’s ability to revoke or limit permissions.

Who Typically Completes and Relies on This Agreement

Common users include professionals who need verified authority to speak or sign for clients in regulated or transactional contexts.

Legal counsel and law firms who require documented client delegations for filings or settlements.
Financial advisors and accountants needing formal authorization to access accounts or submit tax documents.
Property managers and real estate agents who must sign leases or claims on a client’s behalf.

Use this agreement when a third party must demonstrate authority to banks, vendors, courts, or government agencies.

Step-by-Step: Completing a Client Authority Agreement

Follow these four core steps to prepare, verify, sign, and distribute a legally sound Client Authority Agreement.

01

Prepare: Draft the parties, scope, and dates clearly; attach exhibits if needed.
02

Verify Identity: Confirm principal and agent identities with government ID or credential analysis.
03

Execute: Obtain signed, dated signatures from principal and agent with any required witnesses or notarization.
04

Distribute: Provide executed copies to relying third parties and retain originals per retention rules.

Core Elements to Include in a Professional Agreement

A complete Client Authority Agreement combines identity details, precise authority language, execution mechanics, and records instructions so third parties can rely on the authorization with confidence.

Party Identification

Full legal names, business names, addresses, and contact details for principal and authorized agent so relying parties can perform identity checks.

Specific Authority

Explicitly describe permitted actions (e.g., negotiate, execute, access account) and any exclusions to avoid downstream disputes about scope.

Term and Termination

State the effective date, expiration, conditions for termination, and steps required to revoke authority to prevent ongoing exposure.

Authentication Requirements

Specify whether signatures require notarization, witnesses, in-person verification, or remote online notarization (RON) and any authentication strength.

Reliance Clause

Allow third parties to rely on the agreement and set indemnities or instructions about verifying continued authority.

Record Retention

Direct where originals and electronic copies will be stored, including retention periods and responsible parties for custody.

Security and Compliance Items to Record

Encryption: AES-256 at rest

Transport Security: TLS 1.2/1.3 in transit

Audit Trail: Time-stamped events

HIPAA: BAA required

Regulatory Standards: ESIGN and UETA

Certifications: SOC 2 Type II

Key Risks and Potential Legal Consequences

Unauthorized Actions: May be voidable by principal

Regulatory Noncompliance: Fines or administrative action

Tax Reporting Penalties: Per IRC §6721: $60–$330+

I-9 Violations: 8 CFR §274a.2 penalties

HIPAA Breach Exposure: Civil penalties and BAA breach risk

Reputational Harm: Loss of client trust

Common Preparation Errors to Avoid

Using vague scope language that allows broader authority than intended and causes disputes with relying parties.
Failing to verify identity before execution, which can lead banks or regulators to reject the authorization.
Omitting termination or revocation procedures, leaving third parties uncertain when authority has ended.
Relying on unsigned or improperly witnessed copies that cannot be accepted by financial institutions or courts.

Typical Workflow for Electronic Execution and Reliance

A standard electronic workflow includes preparation, identity checks, signer authentication, signing, and distribution with an audit trail for third-party reliance.

Upload: Place fields and required attestations
Authenticate: Use email, SMS, or stronger methods
Sign: Signers apply electronic signatures
Record: Generate certificate of completion

Recommended Online Workflow Settings

Configure the digital workflow to capture identity, timestamping, and retention metadata to support legal reliance and audit needs.

Field	Configuration
Signature Field	Required; include printed name and date
Authentication	Email + optional SMS code for signer verification
Notarization	Enable RON session settings where permitted
Audit Trail	Capture IP, timestamp, and event log

Delivery Options and Integration Considerations

Choose a platform that supports audit trails, identity verification, and the integrations required by your systems and third parties.

Integrations: Salesforce, NetSuite, Google Workspace
Formats: PDF, DOCX, HTML supported
Authentication: SMS, KBA, SSO options

Typical Timing and Processing Expectations

Set internal deadlines and allow time for identity verification, lender or bank review, and third-party acceptance when routing Client Authority Agreements.

Effective Date Selection:

Choose MM/DD/YYYY; governs when authority begins

Acknowledgement Window:

Allow 3–5 business days for routing and verification

Third-Party Review:

Banks may require additional verification time

Revocation Notice:

Specify required written notice period if desired

Record Distribution:

Provide executed copies to all relying parties promptly

Key Milestones from Draft to Reliance

Track milestone stages to ensure the agreement becomes enforceable and can be accepted by third parties.

01

Draft Completion

Finalize parties, scope, and exhibits before review

02

Identity Verification

Confirm IDs and credentials for principal and agent

03

Execution

Signatures, witnesses, and notarization as required

04

Distribution and Retention

Deliver copies to relying parties and store originals

Representative eSignature Vendor Comparison for this Agreement

Common eSignature vendors vary by price, enterprise features, and compliance support; signNow is listed first for comparison consistency.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	$8/user/mo	$15/user/mo	$14/user/mo	$19/user/mo	$15/user/mo
Free Trial	7-day free trial	Varies by vendor	Varies by vendor	Varies by vendor	Varies by vendor
Bulk Send	Yes (Business Premium)	Yes	Yes	Yes	Yes
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No
Envelope Cap	No envelope cap	100 envelopes/user/year	Varies	Varies	Varies

Frequently Asked Questions About the Client Authority Agreement

Answers address execution, e-signature validity, notarization, revocation, and recordkeeping to reduce common points of confusion.

Need help? Contact support

Can a Client Authority Agreement be signed electronically?
Yes. Under the federal ESIGN Act (15 U.S.C. §7001) and UETA in most states, electronic signatures are legally valid if intent, consent, attribution, and retention are present.
When is notarization required?
Notarization is required when a relying party or statute demands it, such as real estate deeds; many instruments are accepted without notarization unless state law or the third party requires it.
How do I revoke an authorization?
Revoke in writing and deliver the revocation to the agent and all relying third parties; include an effective revocation date and retain proof of delivery.
What identification is acceptable for verification?
Use government-issued photo ID and additional credential analysis for remote notarization; platforms may require SMS, knowledge-based authentication, or multi-factor methods.
How long should I keep executed agreements?
Retain agreements for at least three years after termination; extend retention for HIPAA (six years) or tax-related matters per IRS rules.
Will banks accept an electronically signed agreement?
Many financial institutions accept e-signed agreements if they meet ESIGN/UETA requirements and institutional identity checks; confirm institution-specific procedures beforehand.

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