Are electronic signatures valid?

Yes. Electronic signatures are generally enforceable under the federal ESIGN Act (15 U.S.C. ch. 96) and state UETA statutes adopted in most jurisdictions, provided intent, consent, attribution, and record retention criteria are met.

When is notarization required?

Notarization depends on the document type and state law; deeds and some closing affidavits typically require notarization. Verify state notary requirements and RON availability with the applicable state authority.

Can I amend a signed statement?

Yes, but amendments should be documented in writing, signed by the same authorized parties, and cross-referenced to the original effective date to preserve the audit trail and avoid ambiguity.

Who should sign the statement?

An authorized representative of the seller — for entities, this means an officer or person with delegated authority; confirm authority via corporate resolution or power of attorney when necessary.

How long must I keep the statement?

Retain for at least three years for tax purposes (IRC §6501(a)), longer if industry rules apply; healthcare records fall under 45 CFR §164.530(j) with a six-year requirement.

What if information is incorrect after signing?

Promptly notify counterparties, document any negotiated corrections in a signed amendment, and consult counsel about disclosure obligations and potential tax or indemnity implications.

Electronic Signature
Templates
Finance
Financial Seller Statement

Financial Seller Statement

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

FINANCIAL SELLER STATEMENT

Seller and Buyer Information

Seller Name:

Seller Business / DBA Seller Address

Seller Phone

Seller Email

Seller Tax Identification

Buyer Name:

Buyer Business / DBA Buyer Address

Buyer Phone

Buyer Email

Transaction Summary

Transaction Date: Anticipated Closing Date:

Contract / Agreement Reference

Purchase Price: Currency:

Allocation of Purchase Price (If applicable)

Description of Asset	Qty	Unit Price	Allocated Amount

Subtotal:

Tax Rate (%): Tax Amount:

Shipping / Other:

Total Allocated Amount:

Adjustments, Deposits, Liens and Encumbrances

Earnest Deposit / Prepayment Held: Adjustments / Credits to Seller:

Net Proceeds (estimated):

Are there any known liens, encumbrances, or secured obligations affecting transferred assets?

Yes No (none known)

If yes, describe lien(s), creditor, amount, and cure status Outstanding loans or obligations to be assumed or satisfied at closing

Representations and Seller's Certification

The Seller hereby certifies, represents and warrants to Buyer and any escrow agent, as applicable, that to the Seller's knowledge after reasonable inquiry: (a) Seller is the lawful owner of the assets identified above and has full authority to sell the same; (b) all financial statements, schedules and allocations provided to Buyer are true, correct and prepared in good faith; (c) there are no undisclosed liabilities, tax obligations or pending litigation that would materially affect the value of the transferred assets except as disclosed in this statement; and (d) Seller will indemnify and hold harmless Buyer and escrow agent from any loss, cost, or expense arising from a breach of these representations, including reasonable attorneys' fees.

Seller acknowledges that purchase price allocations in this Statement may be relied upon by Buyer, its accountants and taxing authorities. Seller agrees to cooperate with Buyer to prepare or amend any allocation schedules reasonably required for tax reporting and will sign such documents if reasonably requested.

Seller's Additional Disclosures

Tax Withholding and Indemnity

Seller certifies that Seller's tax status and identification provided herein are true and correct, and that Seller is not subject to withholding under applicable tax law except as may be required by binding law or regulation. Seller acknowledges that Buyer or escrow may withhold amounts required by law and remit them to the appropriate taxing authority; Buyer and escrow shall provide documentation of any such withholding. Seller agrees to indemnify Buyer for any tax, penalty, or interest attributable to Seller's failure to properly report or pay taxes arising from the transaction.

Remittance Instructions and Payment Terms

Remittance Instructions (bank, wire, or escrow instructions)

Payment Terms: Funds shall be paid in accordance with the Purchase Agreement. Late payments, where permitted, shall bear interest at the lesser of 1.5% per month or the maximum lawful rate. Seller acknowledges that any fee for wire transfers or banking charges may be deducted from proceeds where contractually permitted.

Attachments and Schedules

List attachments or schedules delivered with this statement

General Provisions

This Financial Seller Statement is made for the benefit of Buyer, Seller and their respective successors and permitted assigns. The representations and certifications contained herein shall survive the closing to the extent provided in the Purchase Agreement. This Statement shall be governed by and construed in accordance with the governing law specified in the underlying Purchase Agreement. Remedies for breach shall include specific performance, damages and any other relief as provided by law or contract.

By signing below, the parties acknowledge that they have read this Financial Seller Statement, that the statements made herein are true and accurate to the best of their knowledge, and that they understand the legal consequences of the certifications and indemnities contained herein.

Seller:

By:

Date:

Title / Capacity:

Buyer:

By:

Date:

Title / Capacity:

What a Financial Seller Statement Is

A Financial Seller Statement is a written declaration provided by a seller that summarizes the financial terms, representations, and disclosures related to the sale of an asset or business. It typically lists the sale price, payment schedule, tax treatment, outstanding liabilities being assumed or retained, and any contingent obligations. The statement helps buyers, sellers, and their advisors confirm agreed financial details prior to closing, supports accounting and tax reporting, and becomes an attachment to purchase agreements or closing packages when parties require documented financial representations.

Why this statement matters to the deal

A clear Financial Seller Statement reduces misunderstanding about payment terms, tax allocations, and assumed liabilities, making closings smoother and audit trails stronger.

Who typically prepares and relies on this statement

The statement supports internal controls and ensures third parties can rely on the same summarized financial facts during and after closing.

Sellers and selling entities — prepare and certify financial disclosures for buyers and escrow agents.
Buyers and acquirers — review statement to confirm price allocation and payment mechanics prior to funding.
Advisors and lenders — rely on the statement for underwriting, tax advice, and closing compliance.

Core elements a professional Financial Seller Statement should include

A complete statement is concise but comprehensive, enabling consistent interpretation and minimizing post-closing gaps.

Transaction identification

Reference the purchase agreement, closing date, and parties involved so the statement unambiguously ties to the specific transaction.

Sale price and allocation

State the total consideration and allocate amounts to assets, goodwill, inventory, and assumed liabilities for tax and accounting clarity.

Payment terms

Describe cash at closing, seller financing, escrow holdbacks, installment schedules, interest rates, and maturity dates.

Representations

List seller statements about outstanding debts, liens, tax obligations, and accuracy of financial statements to support buyer reliance.

Contingent items

Disclose earnouts, indemnity caps, pending claims, or other contingent obligations and how they are measured and paid.

Signatures and dates

Include authorized signer names, titles, signature blocks, and effective date to establish the statement’s execution and timing.

Step-by-step: completing a Financial Seller Statement

Follow these sequential steps to prepare, review, and finalize the statement before closing.

01

Draft statement: Populate identification, price, and allocations from the purchase agreement.
02

Attach supporting schedules: Include payoff letters, tax clearance, or allocation exhibits as needed.
03

Internal review: Have accounting and legal review for accuracy and compliance.
04

Sign and deliver: Obtain authorized signature(s) and distribute to buyer, escrow, and tax advisors.

Typical online workflow settings for secure e-completion

When using an eSignature platform, configure fields and authentication to match the document’s sensitivity and legal requirements.

Field	Configuration
Signature field	Required; match signer role to signer email address.
Date field	Auto-fill on sign; use MM/DD/YYYY format enforcement.
Conditional fields	Show escrow or contingency sections only when applicable.
Authentication	Use email link plus SMS or ID verification for higher assurance.

Where to send the completed statement and who needs copies

Routing should ensure all stakeholders receive the executed statement for records and compliance.

Escrow agent: Deliver executed statement for funding and closing instructions.
Buyer counsel: Provide for post-closing accounting and indemnity reference.
Seller accounting: Retain for tax reporting and year-end reconciliation.
Lender or servicer: Send if financing or payoff coordination is required.

Digital signing and secure distribution considerations

Ensure the chosen provider supports required integrations (escrow, document management) and complies with ESIGN and UETA.

File types: PDF or DOCX preferred; ensure final PDF/A preservation.
Authentication: Email + SMS or ID verification reduces repudiation risk.
Audit trail: Capture IP, timestamp, and signer actions.

Common timing expectations and deadlines

Timelines depend on the transaction but include strict delivery points tied to closing and tax reporting.

Delivery at closing:

Provide executed statement to escrow on or before the closing date.

Tax reporting:

Retain allocation details immediately for year‑end IRS filings and 1099 reporting.

Escrow holdback notices:

Issue within the time window specified in the purchase agreement.

Post-closing corrections:

Notify counterparties promptly and document amendments in writing.

Record retention:

Store executed copies per corporate retention policy and legal requirements.

Key milestones from drafting to final archive

A sequential view helps teams coordinate drafting, approval, signing, and retention steps for the seller statement.

01

Draft prepared

Create the initial statement with allocations and supporting schedules.

02

Internal approvals

Obtain accounting and legal sign-off before external distribution.

03

Execution and signing

Collect authorized signatures and notarizations if required.

04

Distribution and storage

Distribute to stakeholders and archive the executed statement securely.

Essential information fields and data to collect

Seller name: Full legal name

Buyer name: Full legal name

Sale amount: Total consideration

Allocation: Asset breakdown

Signatory details: Name and title

Execution date: MM/DD/YYYY

Common legal and financial risks of incorrect statements

Tax misallocation: IRS adjustments and penalties

Contract disputes: Buyer claims for misrepresentation

Escrow delays: Funding holdbacks or postponement

Regulatory scrutiny: Industry regulator inquiries

Liability exposure: Indemnity and warranty claims

Invalid execution: Missing notarization or witness

Frequent preparation pitfalls to avoid

Using inconsistent party names between documents causes acceptance delays and tax mismatches.
Vague allocation language can trigger IRS reallocation or disputes during audits.
Failing to notarize where required may render the statement ineffective for certain filings.
Overlooking contingent liabilities leads to unexpected post-closing obligations and claims.

Practical tips for accurate and efficient completion

Adopt consistent templates, include supporting schedules, and confirm signer authority to reduce risk.

Use a standard template

A consistent template reduces ambiguity and speeds review; include numbered exhibits and reference the purchase agreement sections.

Confirm signer authority

Verify corporate resolutions or power of attorney documentation for authorized signers to avoid execution disputes.

Attach supporting documents

Include payoff statements, lien searches, and allocation exhibits to substantiate representations and streamline review.

Preserve an audit trail

Retain signed copies, audit logs, and any authentication records for compliance and audit readiness.

Real-world examples of how seller statements are used

The following use cases show common transaction scenarios where a Financial Seller Statement clarified obligations and allocations.

Martin Properties (Real Estate)

Intro: Martin Properties closed multiple rental portfolio sales online to avoid in-person meetings.

Point: They used an executed statement at closing to allocate price among buildings.
Outro: The statement, combined with escrow instructions and a notarized signature, simplified transfer of funds and supported property tax and accounting records without post-closing disputes.

Optica Ventures LLC (Business Sale)

Intro: Optica Ventures summarized seller-side liabilities and earnout mechanics in a single statement.

Point: The buyer relied on that allocation for initial accounting.
Outro: The concise statement reduced back-and-forth during escrow, allowed faster lender underwriting, and provided a clear reference for post-closing indemnity calculations.

eSignature vendor comparison for completing and executing this statement

Platform choice affects authentication, audit trails, HIPAA support, and per-user costs; the table compares common commercial options.

	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 trial	Varies by plan	Varies by plan	Limited trial	Limited trial
Bulk Send	Yes	Yes	Yes	Yes	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No

Frequently asked questions about Financial Seller Statements

Answers address common execution, validity, and recordkeeping questions when preparing or signing a Financial Seller Statement.

Need help? Contact support

Are electronic signatures valid?
Yes. Electronic signatures are generally enforceable under the federal ESIGN Act (15 U.S.C. ch. 96) and state UETA statutes adopted in most jurisdictions, provided intent, consent, attribution, and record retention criteria are met.
When is notarization required?
Notarization depends on the document type and state law; deeds and some closing affidavits typically require notarization. Verify state notary requirements and RON availability with the applicable state authority.
Can I amend a signed statement?
Yes, but amendments should be documented in writing, signed by the same authorized parties, and cross-referenced to the original effective date to preserve the audit trail and avoid ambiguity.
Who should sign the statement?
An authorized representative of the seller — for entities, this means an officer or person with delegated authority; confirm authority via corporate resolution or power of attorney when necessary.
How long must I keep the statement?
Retain for at least three years for tax purposes (IRC §6501(a)), longer if industry rules apply; healthcare records fall under 45 CFR §164.530(j) with a six-year requirement.
What if information is incorrect after signing?
Promptly notify counterparties, document any negotiated corrections in a signed amendment, and consult counsel about disclosure obligations and potential tax or indemnity implications.

be ready to get more

Join over 28 million airSlate SignNow users

Sign Now