Can a Good Faith Estimate be e-signed?

Yes. Under the ESIGN Act (15 U.S.C. §7001) and state UETA laws, an electronic signature is valid when intent to sign, consent to electronic records, attribution, and reliable record retention are documented. Ensure the consumer disclosure and record reproduction requirements are met for consumer-facing transactions.

What happens if fees change after issuing the estimate?

Update and redistribute an amended estimate reflecting the changed fees; document the reason for revisions and retain previous versions in the transaction file. Parties must reconcile the revised estimate with the final closing disclosure to avoid disputes and support lender underwriting.

Who is authorized to sign the estimate?

Authorized signatories are the parties to the transaction or their duly authorized agents. For corporate or trust parties, use an authorized officer or trustee and include capacity and entity name. Verify signing authority through corporate resolutions, power of attorney, or other documentation.

Is notarization or witnesses required?

Notarization and witness requirements depend on the document type and state. Deeds generally require notarization; some states mandate witnesses for certain instruments. Consult state recording and notary statutes and update the estimate page to reflect whether a notarized or witnessed closing document will be required.

How to obtain electronic delivery consent

Provide a clear ESIGN consumer disclosure explaining the right to paper, demonstrate that the recipient can access the electronic format, and capture affirmative consent. Maintain records showing the disclosure and consent for enforceability.

How to fix discrepancies at closing

Document any variance between the estimate and final closing statement, notify affected parties immediately, and provide an amended statement when necessary. Retain communications and revisions. If unresolved, parties may pursue contractual remedies or mediation per the purchase agreement.

Electronic Signature
Templates
Miscellaneous
Real Estate Good Faith Estimate

Real Estate Good Faith Estimate

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

REAL ESTATE GOOD FAITH ESTIMATE

Estimate Date: Expiration Date:

Parties

Provider Name:

Provider Address:

Client Name:

Client Address:

Recitals

WHEREAS, Provider Name: provides real estate brokerage, escrow coordination, title coordination and related services in connection with real estate transactions; and

WHEREAS, Client Name: is considering entering into a real estate transaction for the Property described below and has requested a good faith estimate of anticipated fees and closing costs; and

WHEREAS, Provider, using information reasonably available at the time of this estimate, provides the following Good Faith Estimate subject to the terms and conditions set forth herein.

Property & Transaction

Property Address:

Transaction Type: Purchase Sale Refinance Other

Itemized Estimated Charges

The following amounts are estimates of anticipated charges related to the transaction. Actual amounts may vary. Each monetary field is an estimate and does not constitute a final invoice.

Estimated Closing Costs

Brokerage/Commission: $

Title Insurance: $

Escrow/Settlement Fee: $

Recording Fees & Transfer Taxes: $

Prorations (taxes, HOA, utilities): $

Inspection/Survey/Other Fees: $

Estimated Lender Fees (if applicable): $

Total Estimated Closing Costs: $

Scope of Work

Summary of Services

Payment Terms

Total Estimated Amount Due: $

Payment Schedule

Late Payment Fee (if applicable):

Term and Termination

Effective Start Date: Anticipated End Date:

Termination: Either party may terminate this engagement for material breach by the other party upon written notice. Notice Period (days):

Confidentiality

Provider and Client acknowledge that in the course of performing services and providing this estimate each may receive nonpublic information. Each party agrees to maintain the confidentiality of such information and to use it solely for purposes of the transaction described herein, except as required by law or court order. Confidential information does not include information that is or becomes generally available to the public other than through a breach of this provision.

Accuracy; Non-Binding Nature

This Good Faith Estimate is provided in good faith based on information available as of the Estimate Date. It is an estimate only and not a contract for services or a guarantee of final costs. Final costs are subject to change due to adjustments at closing, third-party charges, lender requirements and market conditions. Provider will use commercially reasonable efforts to notify Client of material changes to the estimate.

Governing Law

This Good Faith Estimate shall be governed by and construed in accordance with the laws of the State specified by the parties. Governing State:

Entire Agreement

This Good Faith Estimate, together with any attachments and incorporated disclosures, constitutes the entire agreement between Provider and Client with respect to the subject matter herein and supersedes all prior written or oral discussions and agreements regarding the estimate.

Acknowledgment and Certification

By checking the box below and signing this document, the undersigned certify that they have received and reviewed this Good Faith Estimate, that the estimate was prepared in good faith by Provider, and that they understand the non-binding nature of the estimate and the potential for final costs to differ.

I acknowledge receipt of this Good Faith Estimate and accept its terms as of the Estimate Date.

Additional Notes

Provider Notes (optional)

Provider Printed Name:

Provider Signature:

Date:

Client Printed Name:

Client Signature:

Date:

What a Real Estate Good Faith Estimate Is

Real Estate Good Faith Estimate provides an itemized preliminary calculation of expected costs associated with a property transaction, including closing fees, title and escrow charges, lender fees, prepaid items, taxes, and agent commissions. It helps buyers, sellers, and brokers understand payment obligations before final settlement and supports transparent comparisons among offers and lenders. While specific formats vary by state and transaction type, the Good Faith Estimate should be presented clearly, with line-item totals and explanations for each charge, and distributed early in the process so parties can plan financing and closing timelines.

Why an Accurate Estimate Matters

A clear Real Estate Good Faith Estimate reduces surprises at closing by summarizing anticipated fees, supports borrower and buyer comparisons, and creates an auditable record for dispute resolution. It promotes transparency and aids financial planning for all transaction participants.

Who Uses the Good Faith Estimate

Primary users include buyers, sellers, lenders, title agents, and real estate brokers who need cost transparency before closing.

Buyers reviewing expected closing costs and financing obligations before final loan approval.
Lenders estimating origination, appraisal, and underwriting fees for loan disclosures and underwriting.
Title and escrow agents preparing itemized title charges, recording fees, and closing statements.

Professionals use the estimate to reconcile final closing statements and identify discrepancies prior to signing settlement documents.

Stepwise Preparation and Delivery

Follow these steps to prepare and deliver a Real Estate Good Faith Estimate that is accurate and compliant with transaction timelines.

01

Gather Documents: Collect contract, loan terms, title info, and tax data.
02

Calculate Fees: Itemize lender, title, escrow, taxes, and commissions.
03

Review with Parties: Send draft to buyer, seller, and lenders for verification.
04

Deliver Estimate: Provide signed estimate and retain a copy for records.

Core Sections Included in a Professional Estimate

Essential sections of a Real Estate Good Faith Estimate break costs into lender fees, title/escrow charges, prepaids, taxes, real estate commissions, and the total estimated cash to close.

Lender Charges

Includes origination, discount points, application fees, processing, underwriting, appraisal costs, and any lender-imposed charges. Each line should include an amount and brief description to support underwriting and borrower disclosure.

Title & Escrow

Itemizes title search, title insurance premiums, escrow agent fees, settlement agent fees, and recording costs. Distinguish between owner and lender policies and specify who pays each fee.

Prepaids & Adjustments

Covers prepaid interest, property taxes, homeowners association dues, hazard insurance premiums, and prorations. These affect funds needed at closing and the initial escrow account balance.

Agent Commissions

Shows broker and agent commission percentages and dollar amounts, including any seller-paid incentives or buyer rebates. Clarify how commissions are calculated and distributed at closing.

Government Fees

Includes recording fees, transfer taxes, municipal charges, and any state-imposed real estate taxes. These vary by jurisdiction and can materially change the cash-to-close estimate.

Estimated Cash to Close

Aggregates buyer-paid items: down payment, closing costs, prepaid items, and credits. Present subtotal lines and a final cash due at closing for planning purposes.

Essential Data Elements to Include

Property Address: Full street address, city, state, ZIP.

Parties' Names: Buyer, seller, and authorized representatives.

Loan Details: Loan type, amount, interest rate estimate.

Title Company: Company name, contact person, phone.

Estimated Fees Totals: Line-item subtotals and grand total.

Effective Date: MM/DD/YYYY format when estimate provided.

How to Configure an Online Estimate Workflow

Configure an online Good Faith Estimate workflow to automate fields, calculate totals, and route documents for signatures and approvals.

Field	Configuration
Auto-calc Totals	Enable automatic fee summation system.
Conditional Fields	Show fields based on transaction type.
Signer Authentication	Email link, SMS code, or KBA options.
Document Retention	Set retention period and export formats.
Delivery Methods	Email, secure link, or platform portal.

Technical and Platform Considerations

Digital delivery and eSubmission reduce processing time; choose secure channels that meet legal and recordkeeping requirements.

Formats Supported: PDF, DOCX, and XML exports.
Integrations: Salesforce, NetSuite, and document repositories.
Authentication Options: Email, SMS, KBA, or SSO.

Where to Send and How to Route the Estimate

Typical routing for a Good Faith Estimate shows preparation, internal review, distribution to parties, and retention in transaction records.

Prepare Document: Draft estimate with itemized line entries.
Internal Review: Compliance and underwriting teams verify charges.
Deliver to Parties: Send via email or signed portal link.
Archive Record: Store PDF and audit trail for retention.

Timing Expectations and Typical Deadlines

Timing expectations for issuing and updating a Good Faith Estimate depend on transaction milestones and lender requirements; provide estimates early and update as fees change.

Initial estimate at contract signing:

Supply preliminary costs when offer is accepted or earlier.

Revise estimate after loan or fee changes:

Update line items whenever loan terms or seller concessions change.

Final estimate provided prior to closing:

Deliver final closing statement that reconciles prior estimates and actual charges.

Retention timeframe starts on closing date:

Retain executed estimate and supporting documents in transaction file.

Provide clarifications within business days:

Respond to party questions promptly to avoid closing delays.

Key Milestones from Estimate to Closing

Key milestones track estimate preparation, distribution, reconciliation with final statements, and final accounting at closing to ensure accuracy.

01

Prepare Estimate

Compile itemized fees and calculate preliminary totals for review.

02

Distribute Draft

Send to buyer, seller, and lender for verification and comments.

03

Reconcile Differences

Adjust estimates to reflect accepted changes and updated charges.

04

Finalize at Closing

Present closing disclosure that matches the final cash-to-close amount.

Common Preparation Pitfalls to Avoid

Failing to separate owner and lender title policy premiums can misstate who pays which charge and create disputes at closing.
Using rounded or combined line items obscures fee detail, making it harder to verify accuracy and increasing audit and regulatory risk.
Not updating estimates after quoted lender rates or third-party fees change leads to cash-to-close surprises and potential last-minute financing problems.
Sending unsigned or unsigned-without-consent estimates can complicate enforceability and recordkeeping; confirm consent to electronic delivery per ESIGN requirements.

Consequences of Incorrect or Incomplete Estimates

Closing Delays: Incorrect estimates can postpone settlement.

Dispute Risk: Parties may dispute charges.

Loan Denial: Underestimated fees may affect loan approval.

Regulatory Scrutiny: Failure to disclose may trigger reviews.

Tax Reporting Issues: Misreported fees complicate deductions.

Title Claims: Unresolved fees can create lien problems.

eSignature Pricing and Feature Snapshot for Real Estate Use

Compare basic pricing and core capabilities for eSignature solutions commonly used to collect and manage Real Estate Good Faith Estimates.

	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	No	Yes, limited	Yes, limited
Bulk Send	Yes	Yes	Yes	Yes	No
Audit Trail	Yes	Yes	Yes	Yes	Yes
HIPAA Compliant	Yes	Yes	Yes	No	No

FAQs and Troubleshooting for Good Faith Estimates

Answers to common questions about preparing, delivering, and updating a Real Estate Good Faith Estimate, including electronic handling and signatures.

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