Can the agreement be signed electronically?

Yes. Electronic signatures are valid under the ESIGN Act (15 U.S.C. ch. 96) and UETA in most states, provided the parties demonstrate intent, consent, attribution, and record retention.

Is notarization required for recordings?

Many real-estate instruments require a notary for recording; deeds typically need a notary acknowledgement. Check local recording office rules before sending documents for recording.

What if a contractor is unpaid and files a lien?

Owners should require lien-waiver forms tied to payments and follow state mechanic’s lien notice and timing rules; timely payment and proper lien waivers reduce exposure.

How should change orders be handled?

Use a written change-order form requiring scope, cost, and signatures before extra work begins; include pricing method and time extensions to avoid disputes.

Do consumer protections apply?

For consumer-facing home improvement contracts, some states require statutory notices, cancellation rights, or specific contract language — confirm state consumer protection rules.

How long must I keep the executed agreement?

Keep the signed agreement for the project term plus at least three years; real-estate and tax documents may require longer retention per IRS and state rules.

Electronic Signature
Templates
Miscellaneous
Property Improvement Agreement

Property Improvement Agreement

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PROPERTY IMPROVEMENT AGREEMENT

Parties

Owner Name: Owner Address:

Owner Mailing Address

Contractor Name: Contractor Address:

Contractor Mailing Address

Effective Date: ,

Recitals

WHEREAS, Owner is the legal owner of the real property described by the address provided above and desires to engage Contractor to perform certain improvements and related services at the property; and

WHEREAS, Contractor represents that it possesses the necessary licenses, personnel, equipment and experience to perform the work described herein in a competent and workmanlike manner and agrees to perform such work under the terms and conditions set forth in this Agreement; and

NOW, THEREFORE, in consideration of the mutual covenants and promises contained herein, the parties agree as follows:

Scope of Work

Detailed Description of Improvements

Payment Terms

Contract Sum: $ Deposit: $

Payment Schedule and Milestones

Late Payment Fee: Grace Period: Interest shall accrue on past due amounts in accordance with the fee specified above after the grace period.

Materials, Permits and Site Access

Permits Required: Contractor shall identify all required permits and is responsible for obtaining permits unless otherwise indicated below.

Permits Responsibility

Ownership of Materials: Unless otherwise agreed in writing, Contractor shall retain title to materials and equipment supplied by Contractor until paid in full. Owner-provided materials:

Change Orders

Change Order Procedure

Warranties

Contractor warrants that all labor and materials furnished under this Agreement will be free from substantial defects for a period of following completion. This warranty does not cover damage resulting from ordinary wear, Owner alterations, or acts beyond Contractor's control.

Insurance and Indemnity

Insurance Requirements

Indemnification: Contractor shall indemnify and hold Owner harmless from claims, liabilities, losses, and expenses (including reasonable attorneys' fees) arising out of Contractor's negligent performance or breach of this Agreement, except to the extent caused by Owner's gross negligence or willful misconduct.

Term and Termination

Commencement Date: ,

Estimated Completion Date: ,

Termination for Cause or Convenience: Either party may terminate this Agreement for cause upon material breach if the breaching party fails to cure within after written notice. Owner may also terminate for convenience upon payment of Contractor for work performed, reasonable demobilization costs, and any approved change orders.

Confidentiality

Each party shall keep confidential and shall not disclose to any third party any non-public information, plans, pricing, trade secrets or other proprietary information obtained from the other party in connection with this Agreement, except to the extent required by law or necessary to perform this Agreement. Confidential information does not include information that is or becomes generally available to the public through no act or omission of the receiving party.

Governing Law; Dispute Resolution

This Agreement shall be governed by and construed in accordance with the laws of the State of . Any dispute arising out of or relating to this Agreement shall be resolved by binding arbitration or litigation as elected by the prevailing party, subject to the venue provisions of the governing law.

Entire Agreement

This Agreement, including any exhibits and accepted change orders, constitutes the entire agreement between the parties on the subject matter hereof and supersedes all prior negotiations, proposals, representations, warranties, communications and agreements, whether oral or written. No amendment or modification shall be effective unless in writing and signed by both parties.

Additional Provisions

Additional Terms (optional)

Owner (Print Name):

By:

Date:

Contractor (Print Name):

By:

Date:

What a Property Improvement Agreement Is and When It’s Used

A Property Improvement Agreement is a contract that documents terms for renovations, repairs, or enhancements to real property. It identifies the owner, contractor, scope of work, schedule, payment terms, warranties, and permit responsibilities. The agreement allocates risk, confirms contractor licensing and insurance, and sets dispute resolution and governing law. It is commonly used for home renovations, landlord improvements, commercial tenant build-outs, and lender-required upgrades. Accurate documentation helps enforce obligations and reduce payment and liability disputes between parties during and after completion of improvements.

Why a Clear Property Improvement Agreement Matters

A well-drafted agreement aligns expectations on scope, cost, timing, and responsibility for permits and inspections. Clarity reduces disputes, supports permit approvals, and documents change orders and payment milestones for lenders, landlords, and contractors.

Who Commonly Prepares and Signs This Agreement

Typical parties include property owners, general contractors, subcontractors, property managers, and financing parties who need a written allocation of construction responsibilities.

Property owners and landlords: Use the agreement to require licensed contractors, define deliverables, and set payment schedule and retainage terms.
General contractors and subcontractors: Establish scope, change order process, insurance requirements, and timelines to manage subcontracting and payments.
Lenders and investors: Require documented improvements, cost estimates, and draws tied to inspection milestones for loan disbursements.

The agreement ensures each signer understands obligations and who assumes risk for permits, liens, and warranty duties after completion.

Principal Signers and Typical Roles

Owner — Property Owner

The owner authorizes work, approves budgets and change orders, and confirms acceptance of completed work. The owner is responsible for payments per the schedule and for ensuring site access and necessary property disclosures.

Contractor — General Contractor

The contractor accepts scope, warranties, permits, and insurance requirements. The contractor must maintain licensing, provide lien waivers on payment, and coordinate subcontractors and inspections to meet agreed milestones.

Essential Administrative and Compliance Data

Party Names: Full legal entity names

Property Address: Street, city, state, ZIP

Scope Summary: Concise work description

Contract Sum: Total price or schedule

Insurance: Policy types and limits

Licensing: Contractor license numbers

Key Legal Risks and Consequences

Mechanic’s Liens: Potential for lien filings

Late Payments: Interest and stop-work risk

Unpermitted Work: Municipal fines or removal

Warranty Disputes: Repair costs and litigation

Insurance Gaps: Uncovered liability exposure

Incorrect Scope: Change order disputes

Common Preparation Pitfalls to Avoid

Vague scope descriptions that omit materials, finishes, or allowances — leads to costly disputes and differing expectations during punch-list review.
Missing permit responsibility language so the parties dispute who applies, pays, or corrects unpermitted work after inspections fail.
No defined change-order procedure or pricing method — verbal changes become subject to disagreement and unapproved extra charges.
Failure to require contractor insurance and license verification, increasing owner exposure if a worker is injured or work is defective.

Step-by-Step: Completing a Property Improvement Agreement

Follow a consistent sequence to reduce errors and ensure enforceability when preparing the agreement.

01

Identify Parties: Enter full legal names and contact information.
02

Describe Scope: Detail tasks, materials, and specifications.
03

Set Schedule: Define start, milestones, and completion dates.
04

Define Payment: Specify amounts, retainage, and draw conditions.

How the Agreement Moves from Draft to Signed

A clear signing workflow ensures everyone receives, reviews, and signs the document in the proper order.

Drafting: Prepare the initial agreement and exhibits.
Review: Parties review legal, insurance, and permit terms.
Signing: Authorized signers execute the agreement.
Recordkeeping: Store executed copies and supporting permits.

Key Clauses to Include in a Professional Agreement

Include specific, enforceable clauses to manage performance, payment, change orders, safety, and dispute resolution for construction-related property improvements.

Scope of Work

A detailed description of tasks, materials, specifications, excluded items, and any referenced plans or exhibits to avoid scope creep and disputes.

Payment Terms

Total contract price, progress draw schedule, retainage percentage, final payment conditions, and required lien waivers for each payment to protect owners.

Change Orders

Procedure for written change orders, pricing method (unit price or time and materials), and signatures required before extra work begins.

Permits and Inspections

Allocation of responsibility and costs for permit applications, required inspections, and correction of code violations discovered during work.

Insurance and Indemnity

Contractor insurance types, minimum limits, additional insured requirements, and indemnity clauses to address third-party claims and property damage.

Warranties

Duration and scope of workmanship and material warranties, start date, and remedies for breach, including repair obligations and remedies.

Digital Workflow Settings for Online Completion

Configure an e-signature workflow to ensure authorized parties sign in order, with audit trail and identity checks as needed.

Field	Configuration
Signature Order	Set sequential or parallel signing as required
Authentication	Email link, SMS code, or advanced ID check
Attachments	Attach permits, plans, and proof of insurance
Audit Trail	Enable timestamps, IP logging, and version history

Technical Options for Distribution and Signing

Choose a platform that supports your required authentication, audit trail, storage, and industry compliance features.

File Formats: PDF and DOCX supported
Integrations: Connects with Procore, NetSuite, Salesforce
Authentication: Email, SMS, KBA, or advanced methods

Ensure the chosen provider can retain signed copies, export certificates of completion, and integrate with your project or finance systems for recordkeeping.

Typical Timing and Deadline Considerations

Property improvement projects have specific milestone dates and statutory timing that affect payments, inspections, and lien rights.

Start Date:

Defined in MM/DD/YYYY; triggers schedule and permits

Milestone Inspections:

Dates for required inspections and owner approvals

Payment Due Dates:

Per draw schedule tied to milestone completion

Change Order Response:

Specify response window, typically 5–10 business days

Completion Date:

Substantial completion and final acceptance dates

Key Project Milestones from Agreement to Closeout

A sequential milestone view helps parties and lenders coordinate inspections, releases, and final payments.

01

Agreement Execution

Parties sign and funds or permits are secured.

02

Pre-Construction

Permits pulled, site mobilized, and insurance confirmed.

03

Progress Milestones

Inspections and draws occur per schedule and approvals.

04

Final Closeout

Punch list completed, final payment, and lien releases delivered.

eSignature Pricing and Features Comparison for Signing Property Improvement Agreements

Compare vendor starting prices and core features that matter for construction and real-estate workflows; 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	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
HIPAA Compliant	Yes	Yes	Yes	No	No

Real-World Examples of Online Execution

These customer examples illustrate how digital signing and structured agreements simplify property improvement workflows.

Tim Martin — Founder

Business owner processed documents electronically to retain compliance and speed approvals.

Implementation reduced in-person meetings and allowed mobile signing on-site.
The result was more efficient document turnaround and consistent compliance across multiple properties using online signing and secure storage.

Brian Fitzgibbons — COO

A small portfolio firm used online signing for tenant improvements and contractor agreements.

The interface allowed customers to sign without accounts.
This streamlined execution, reduced administrative follow-up, and improved tracking of signed exhibits and insurance certificates.

Practical Tips for Cleaner, Enforceable Agreements

Adopt consistent drafting and review habits to reduce disputes and speed payment and closeout.

Use Clear, Measurable Scope Language

Define deliverables, materials, and measurable acceptance criteria. Attach plans, specifications, and a unit-price schedule to avoid subjective interpretations during completion.

Tie Payments to Inspections

Link each draw to a specific inspection or milestone with required evidence, and require lien waivers for draw disbursement to protect owners.

Document All Changes

Require written change orders with pricing and signatures before work proceeds; preserve historical versions and approvals to support dispute resolution.

Verify Licensing and Insurance

Collect contractor licenses, certificates of insurance naming owner as additional insured, and save these documents with the executed agreement.

Common Questions About Property Improvement Agreements

Answers to frequent questions on enforceability, signatures, and common post-signing issues for property improvement agreements.

Need help? Contact support

Can the agreement be signed electronically?
Yes. Electronic signatures are valid under the ESIGN Act (15 U.S.C. ch. 96) and UETA in most states, provided the parties demonstrate intent, consent, attribution, and record retention.
Is notarization required for recordings?
Many real-estate instruments require a notary for recording; deeds typically need a notary acknowledgement. Check local recording office rules before sending documents for recording.
What if a contractor is unpaid and files a lien?
Owners should require lien-waiver forms tied to payments and follow state mechanic’s lien notice and timing rules; timely payment and proper lien waivers reduce exposure.
How should change orders be handled?
Use a written change-order form requiring scope, cost, and signatures before extra work begins; include pricing method and time extensions to avoid disputes.
Do consumer protections apply?
For consumer-facing home improvement contracts, some states require statutory notices, cancellation rights, or specific contract language — confirm state consumer protection rules.
How long must I keep the executed agreement?
Keep the signed agreement for the project term plus at least three years; real-estate and tax documents may require longer retention per IRS and state rules.

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