Can a rider be signed electronically?

Yes. Electronic signatures are generally enforceable under the federal ESIGN Act (15 U.S.C. ch. 96) and state UETA laws unless a statutory exception applies. Ensure the platform captures intent, consent, attribution, and retention to meet the legal-validity test.

Do concessions affect taxes?

Potentially. Rent concessions can change revenue recognition and tax reporting. Consult tax counsel and accounting guidance to determine whether a concession is taxable income, a business expense, or requires disclosure under IRC rules.

Is notarization required?

Not typically for ordinary commercial concessions, but state law or lender requirements may require notarization for certain amendments or where signature acknowledgment is standard. Check local notary rules before execution.

What if a party signs without authority?

A signature by someone lacking authority risks unenforceability. Mitigate by obtaining written delegation, board resolutions, or power of attorney that confirm authority to bind the entity.

How should executed riders be stored?

Retain the executed rider with the primary contract in a secure repository. Maintain access to the audit trail and keep records per IRS (3 years) and any industry-specific retention requirements.

Can the rider be revoked?

Revocation depends on the rider’s terms and applicable contract law. If both parties consent, amend or replace the rider in writing; unilateral revocation may constitute breach and trigger remedies specified in the base agreement.

Electronic Signature
Templates
Real estate
Concession Rider Agreement

Concession Rider Agreement

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

CONCESSION RIDER AGREEMENT

Parties

This Concession Rider Agreement (Rider) is entered into as an amendment to the Purchase Agreement dated between the undersigned parties concerning the Property identified below.

Buyer - Full legal name Buyer - Contact address Buyer - Phone Seller - Full legal name Seller - Contact address Seller - Phone

Property Identification

Street Address Parcel / APN Number Legal Description

Concession Terms and Consideration

Seller hereby agrees to provide the following concession(s) to Buyer, subject to the terms of this Rider and the referenced Purchase Agreement. Concessions shall be disbursed at Closing unless otherwise specified and are in addition to, and modify, the Purchase Agreement as stated herein.

Select concession type(s)

Closing cost credit to Buyer at Closing

Reduction of Purchase Price

Temporary mortgage rate buydown paid by Seller

Repair credit applied at Closing

Seller-paid closing rent/leaseback concession

Other concession - Describe Total maximum concession amount

If the total of the concession items exceeds the maximum concession amount specified above, Seller shall not be obligated to pay amounts in excess of that maximum unless Seller executes a separate written agreement expressly increasing the maximum.

Timing and Conditions

Concession to be disbursed at Closing on the Closing Date of the Purchase Agreement or on the earlier date specified below:

Concession subject to the following conditions (check all that apply)

Lender approval or acceptance of concession

Appraisal supporting loan amount or value

Buyer satisfaction with inspection within days

Earnest money modification (if any) Closing Date (if different)

Disclosures

The parties acknowledge that the existence of this concession may affect the parties' tax liabilities, lender underwriting, and governmental reporting. Each party is advised to consult appropriate tax and lending professionals. Seller makes the following representations as of the date of this Rider:

Lead-based paint known: Yes No

Mold or moisture conditions known: Yes No

Prior material structural or water damage known: Yes No

Representations, Defaults and Remedies

Seller represents it has full authority to grant the concessions described herein and that no other third-party consent is required except as disclosed. Buyer and Seller acknowledge that this Rider is an amendment to the Purchase Agreement. In the event of Buyer default under the Purchase Agreement, any concession amounts received by Buyer or applied on Buyer's behalf shall be subject to recovery by Seller to the extent permitted by law and the Purchase Agreement.

If Buyer's lender disallows any concession or requires additional documentation, Buyer and Seller shall in good faith cooperate to resolve the matter. If resolution is not obtained by the earlier of Closing or any extension mutually agreed in writing, Seller's obligation to provide the disputed concession shall terminate without constituting a default by Seller under this Rider unless the Purchase Agreement provides otherwise.

Miscellaneous

Entire Agreement: This Rider, together with the Purchase Agreement and any addenda expressly incorporated by reference, constitutes the entire agreement between the parties with respect to the concessions described herein and supersedes any prior oral or written agreements.

Amendment and Integration: This Rider may be modified only by a written instrument executed by both Buyer and Seller. Except as explicitly modified by this Rider, all terms and conditions of the Purchase Agreement remain in full force and effect.

Governing Law: This Rider shall be governed by and construed in accordance with the substantive laws of the state in which the Property is located, without regard to choice of law principles.

Severability: If any provision of this Rider is held unenforceable, the remaining provisions shall remain in full force and effect.

Acknowledgment

Each party acknowledges receipt of a fully executed copy of this Rider and confirms that the person signing on behalf of a party has the authority to bind that party to this Rider.

Buyer - Print Name:

By:

Date:

Seller - Print Name:

By:

Date:

What a Concession Rider Agreement Is and when it applies

A Concession Rider Agreement is a written amendment to a lease or purchase contract that documents concessions granted by one party — typically a landlord or seller — to another. Common concessions include rent abatements, tenant improvement allowances, fee waivers, or one-time credits tied to move-in, repairs, or marketing. The rider attaches to and modifies the main contract, specifying scope, amount, timing, eligibility, repayment or offset mechanics, and any performance conditions. Properly drafted riders reduce ambiguity, document consideration, and make enforcement and accounting consistent with the base agreement.

Why use a Concession Rider Agreement

A clear rider documents the exact concession, prevents disputes, and aligns accounting and tax treatment with lease terms. It protects both parties by recording conditions, timelines, and remedies while preserving the integrity of the main agreement.

Typical parties and use cases for this rider

Use the rider when a narrowly scoped, enforceable modification is needed; avoid embedding long-term obligations that should be handled in an amended main agreement.

Landlords and property managers providing rent concessions or tenant improvement credits during lease negotiations.
Commercial tenants negotiating move-in allowances, free rent periods, or expense offsets.
Real estate brokers or asset managers formalizing temporary concessions tied to lease execution or renewals.

Who can sign and why their role matters

Authorized Signatory

An individual listed in corporate records, the property owner, or an officer with delegated authority should sign. Verify authority to bind the entity through board resolutions, power of attorney, or company bylaws to ensure enforceability.

Tenant Representative

A tenant’s authorized representative (property manager, broker, or corporate officer) must have documented signing authority; mismatched signatures can trigger disputes or claims of unenforceability in court.

Key clauses to include in a professional Concession Rider Agreement

A well-structured rider isolates the concession mechanics and their interaction with the base lease. Include clear definitions, timing, payment mechanics, offsets, conditions for repayment, and integration language tying the rider to the main contract.

Concession Description

Describe the concession precisely (dollar amounts, percentage, duration) and the recipient(s) to avoid ambiguity and ensure consistent accounting treatment.

Effective Date

State the effective date and whether the concession is retroactive or prospective; this date affects rent schedules and potential tax reporting.

Conditions and Performance

List performance triggers (occupancy, completion of work, documentation) required to earn or retain the concession.

Repayment or Offset Terms

Explain whether concessions are forgiven, repayable upon early termination, or applied as offsets to future payments, including calculation examples.

Integration Clause

Confirm the rider amends the main agreement and state which provisions remain unchanged to prevent conflicting interpretations.

Signatures and Authority

Include full signature blocks, printed names, titles, dates, and a statement confirming signatories have authority to bind their parties.

Step-by-step: preparing and signing a Concession Rider Agreement

Follow these steps to draft, approve, and execute a clear, enforceable rider attached to the base lease or contract.

01

Draft the Concession: Define amount, conditions, and duration in plain terms.
02

Confirm Authority: Verify signatory authority and document delegations if needed.
03

Attach to Base Agreement: Reference the original contract by date and parties.
04

Sign and Distribute: Obtain signatures, date the rider, and distribute executed copies to all parties.

How to set up a digital workflow for the rider

Configure a repeatable digital workflow that routes the rider for signature, stores executed documents, and captures an audit trail.

Field	Configuration
Signature Order	Sequential or parallel routing based on signatory roles
Authentication	Email + optional SMS code or KBA for higher assurance
Attachments	Attach base lease and exhibits for context
Archive Location	Store in document management system with retention tags

Where to send and how to file the executed rider

After execution, distribute copies to all parties and file with the primary contract and accounting records; record any necessary notices.

Tenant File: Place a signed copy in the tenant’s lease file and property management system.
Owner / Landlord Records: Add to the owner’s contract repository and update rent schedules.
Accounting: Record concessions according to GAAP/ASC guidance for rent concessions.
Third Parties: Provide copies to brokers, lenders, or insurers as contractually required.

Distribution channels and eSignature considerations

Maintain a single source of truth and ensure the chosen channel supports required authentication and retention policies.

Email with Secure Link: Sends to signer inbox; supports guest signing and audit metadata.
In-person / Kiosk: Useful for on-site execution with device-based authentication.
Integrated Storage: Save executed rider to systems like Box, Google Drive, or NetSuite.

Timing and critical dates to track

Monitor key dates tied to concession performance and reporting to avoid repayment triggers or missed benefits.

Execution Date:

Date parties sign; controls when concession begins.

Concession Start:

When credits or abatements first apply.

Concession End:

Final date for concession eligibility or application.

Repayment Deadline:

Due date for any repayment if trigger occurs.

Accounting Close:

Dates for recording concessions in financial statements.

Key milestones from negotiation to archived record

Track milestones as numbered stages to ensure delivery, approval, and record retention across contracting and accounting teams.

01

Negotiation Complete

Concession terms finalized and approved internally.

02

Rider Drafted

Legal or leasing team prepares the rider document.

03

Execution

All authorized signatures obtained and dated.

04

Record and Archive

Executed rider filed with main lease and accounting records.

Common mistakes to avoid

Vague concession language that leaves calculation methods undefined and invites disputes.
Failing to verify signatory authority, leading to claims the rider is not binding.
Neglecting to attach the rider to the correct base agreement or to reference it accurately.
Ignoring tax and accounting implications, which can cause reporting errors or restatements.

Risks and potential consequences of an incorrect rider

Enforceability Risk: Ambiguous terms may render the concession unenforceable in court.

Repayment Exposure: Undefined triggers could unintentionally require repayment upon termination.

Tax Misreporting: Improper characterization can lead to IRS issues or adjustment to taxable income (IRC §6501(a)).

Accounting Errors: Incorrect timing or recognition can affect financial statements and audits.

Notice Failures: Failing to send executed riders to lenders or insurers may breach reporting covenants.

Operational Disputes: Lack of clarity on service or repair responsibilities can cause business interruptions.

Real-world examples of concession riders in action

Illustrative scenarios show how riders resolve specific negotiation items without redoing the entire lease.

Office Lease TI Credit

A landlord offers a $30,000 tenant improvement credit applied over 24 months

Credit applied as monthly offset
The rider specifies amortization, repayment on early termination, and evidence required for disbursement to avoid disputes.

Retail Free Rent Period

A landlord grants two months free rent for a new tenant who signs a five-year lease

Free months applied to first two billing cycles
The rider clarifies whether utilities or CAM charges are included and the repayment mechanics if the tenant vacates early.

Supporting documents to include with the rider

Attach relevant exhibits and evidence to the rider so the concession is actionable and auditable.

Base Agreement

Include a copy or cite the date and parties of the primary lease or contract for context and integration.

Payment Schedule

Provide an amortization or credit application schedule showing how concessions reduce future payments.

Scope Exhibits

Attach plans, work scopes, or invoices tied to tenant improvement allowances or repair credits.

Evidence Checklist

List required evidence (insurance certificates, COs, completion affidavits) to trigger concession disbursements.

Practical tips for clear and enforceable concession riders

Adopt consistent drafting habits to reduce disputes and simplify administration.

Be Specific

Use exact dollar amounts, dates, and calculation examples rather than ambiguous phrases that invite conflicting interpretations.

Reference the Base Lease

Cite the original agreement by date and parties and specify which provisions are modified by the rider.

Document Authority

Obtain written evidence of signatory authority to bind entities and attach delegation documentation when appropriate.

Preserve Audit Trails

Capture execution metadata (timestamp, IP, signer authentication) and store executed riders with version control.

Common eSignature options for executing Concession Rider Agreements

Comparing basic pricing and capability markers helps choose a platform that meets authentication, compliance, and volume needs. signNow is listed first per vendor comparison conventions.

	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, no card	Varies by vendor	Varies by vendor	Varies by vendor	Varies by vendor
Bulk Send	Yes	Yes	Yes	Yes	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
Envelope Cap	No cap	100 envelopes/user/year	Varies by plan	Varies by plan	Varies by plan

Frequently asked questions about Concession Rider Agreements

Answers to common questions about drafting, signing, and enforcing riders, including eSignature and retention concerns.

Need help? Contact support

Can a rider be signed electronically?
Yes. Electronic signatures are generally enforceable under the federal ESIGN Act (15 U.S.C. ch. 96) and state UETA laws unless a statutory exception applies. Ensure the platform captures intent, consent, attribution, and retention to meet the legal-validity test.
Do concessions affect taxes?
Potentially. Rent concessions can change revenue recognition and tax reporting. Consult tax counsel and accounting guidance to determine whether a concession is taxable income, a business expense, or requires disclosure under IRC rules.
Is notarization required?
Not typically for ordinary commercial concessions, but state law or lender requirements may require notarization for certain amendments or where signature acknowledgment is standard. Check local notary rules before execution.
What if a party signs without authority?
A signature by someone lacking authority risks unenforceability. Mitigate by obtaining written delegation, board resolutions, or power of attorney that confirm authority to bind the entity.
How should executed riders be stored?
Retain the executed rider with the primary contract in a secure repository. Maintain access to the audit trail and keep records per IRS (3 years) and any industry-specific retention requirements.
Can the rider be revoked?
Revocation depends on the rider’s terms and applicable contract law. If both parties consent, amend or replace the rider in writing; unilateral revocation may constitute breach and trigger remedies specified in the base agreement.

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