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Real Estate Licensee Status Addendum

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REAL ESTATE LICENSEE STATUS ADDENDUM

This Real Estate Licensee Status Addendum is attached to and made a part of the Purchase Agreement dated , concerning the Property described below.

Property Identification

Parties

Licensee Information and Status

Licensee Name:

State or Jurisdiction of License:

License Status:

Role and Relationship to Transaction

The licensee discloses (check all that apply):

Compensation and Financial Interest

Will the licensee or associated brokerage receive compensation, commission, referral fee or other economic benefit in connection with this transaction?

Property Condition Disclosures

The parties acknowledge receipt of the following disclosures regarding the physical condition of the Property:

Lead-based paint disclosure:

Mold or water intrusion:

Prior material damage or repairs:

Acknowledgment and Certification

The undersigned licensee certifies that the information provided in this Addendum is true and correct to the best of the licensee's knowledge. The licensee further confirms that any compensation, ownership interest, or relationship to a party has been disclosed above. The licensee understands that failure to disclose material facts related to the licensee's status or interest may subject the licensee to professional disciplinary action and may affect the contract between the Buyer and Seller.

The Buyer and Seller acknowledge receipt of this Licensee Status Addendum and acknowledge that the status and relationship disclosed herein were made known prior to execution of the Purchase Agreement or as an addendum thereto. Acceptance of this Addendum does not waive any party's right to rely on other disclosures, inspections, or warranties required by law or by the Purchase Agreement.

Default, Remedies and Governing Law

This Addendum is incorporated into the Purchase Agreement. In the event of a conflict between this Addendum and the Purchase Agreement, the terms of this Addendum shall govern as to matters of licensee disclosure only. Remedies for breach of any representations or warranties in this Addendum shall be those provided in the Purchase Agreement and under applicable law. This Addendum shall be governed by the laws of the jurisdiction governing the Purchase Agreement.

Entire Agreement: This Addendum, together with the Purchase Agreement, constitutes the entire agreement of the parties concerning the subject matter hereof and supersedes any prior written or oral statements regarding licensee status or interest.

Buyer Printed Name:

By:

Date:

Seller Printed Name:

By:

Date:

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What the Real Estate Licensee Status Addendum Is

The Real Estate Licensee Status Addendum is a short contractual attachment used in property transactions to disclose whether a party to the transaction is a licensed real estate professional and, if so, their license details and relationship to the transaction. It clarifies duties, agency relationships, and compensation arrangements tied to the licensed status. Typical uses include sales contracts, lease agreements, and listing addenda where one party’s professional license could create a conflict of interest or is required for statutory disclosures. The addendum helps document transparency and reduces post-closing disputes about representation or referral fees.

Why this Addendum Matters for Transactions

The addendum provides clear, written disclosure of license status and any business or referral relationships, which supports informed consent between parties and helps satisfy state disclosure rules and brokerage policies. It reduces risk by documenting the licensee’s role and any compensation that could influence the transaction.

Why this Addendum Matters for Transactions

Who Typically Completes This Addendum

Real estate licensees, brokers, property sellers, buyers, landlords, and property managers commonly complete the addendum to disclose professional status and identify brokerage relationships.

  • Licensed agents and brokers who are party to a sale or lease and must disclose affiliation or compensation arrangements.
  • Property owners or tenants when they employ or receive services from a licensed real estate professional.
  • Transaction coordinators or closing agents who need an explicit record of licensee involvement.

Use this addendum whenever a party’s professional real estate status could affect material terms, compensation, or regulatory disclosure obligations.

Step-by-Step: How to Complete the Addendum

Follow these steps in order to complete the Real Estate Licensee Status Addendum accurately and ensure it ties to the main transaction documents.

  • 01
    Identify Parties: Enter buyer/seller or lessor/lessee names matching the main contract.
  • 02
    Record License Info: Fill licensee name, number, issuing state, and brokerage details.
  • 03
    State Role: Select or describe the licensee’s role and agency relationship explicitly.
  • 04
    Sign and Date: All relevant parties must sign and date to acknowledge the disclosure.

Core Elements Found in a Professional Addendum

A well-drafted addendum groups information clearly so it is simple to verify and retain alongside the primary contract.

Identification

Full legal names and contact details of the licensee and the transacting parties to link the disclosure to the correct individuals and documents.

License Details

Issuing state, license number, and brokerage affiliation for authority verification and regulatory compliance.

Role and Authority

A concise statement of the licensee’s role — listing, selling, buyer representation, or referral — to clarify duties and obligations.

Compensation Disclosure

Explicit statement of any commissions, referral fees, or other payments, including payor and calculation method, to avoid conflicts.

Consent and Acknowledgment

A signature block with dated acknowledgments that parties received and understand the disclosure and consent to any dual representation if applicable.

Record Linkage

Reference to the primary agreement (contract date and title) so the addendum is clearly tied to the transaction file.

Essential Data Items to Capture

License Name: Full legal name
License No.: State-issued number
State: Issuing state
Brokerage: Company name
Role: Agent role
Compensation: Payment terms

Risks and Consequences of Incomplete or Incorrect Disclosures

Regulatory Violation: Fines, license discipline
Contract Voidance: Unenforceable compensation clauses
Civil Liability: Damages claims
Transaction Delay: Closing postponement
Reputational Harm: Brokerage impact
Withholding Risk: Backup withholding if TIN issues arise

Frequent Errors to Avoid When Preparing the Addendum

  • Entering an expired license number or failing to update the issuing state, which prevents verification and may trigger regulator inquiries.
  • Using informal or mismatched party names that do not match the primary contract or state records, creating ambiguity about who consented.
  • Omitting compensation details or using vague language such as 'to be agreed,' which can render payment terms unenforceable.
  • Failing to obtain dated signatures from all required parties, especially when the licensee and principal sign in different places or at different times.

How the Addendum Fits into the Transaction Workflow

Integrate the addendum early in the contract process to ensure disclosure before acceptance and avoid post-contract disputes.

  • Draft: Prepare addendum and link to main contract
  • Verify: Confirm license details with state database
  • Disclose: Provide to all parties before signing
  • Archive: Attach to transaction records

Configuring a Digital Workflow for the Addendum

Set up an e-signature workflow that enforces required fields, signer order, and record retention to maintain compliance and an audit trail.

Field Configuration
Required Fields Make license number, issuing state, and signatures mandatory
Signer Order Set licensee first, then other parties
Authentication Use email link or SMS code for signer verification
Audit Trail Capture IP, timestamp, and actions

Technical Options for Digital Signing and Submission

Choose a platform that supports secure e-signatures, tamper-evident PDFs, and configurable signer authentication for regulatory and audit needs.

  • Supported Formats: PDF, DOCX
  • Integrations: CRMs and storage
  • Authentication: Email, SMS, advanced options

Ensure the platform you select provides a complete audit trail, secure storage (encryption at rest and in transit), and the ability to export signed records to your transaction management system.

Timing Considerations and Typical Deadlines

Be mindful of disclosure timing: deliver the addendum before contract acceptance or as required by state disclosure laws to avoid rescission or penalties.

Pre-Acceptance:

Provide license disclosures before offer acceptance

At Signing:

Have all parties sign and date the addendum with the contract

Before Closing:

Ensure disclosure is recorded in the transaction file

Record Retention:

Retain signed addendum according to retention policy

Amendments:

Execute any revisions in writing and signed by all parties

Key Processing Milestones for the Addendum

A simple milestone sequence helps teams track completion, verification, and retention steps for every addendum executed.

01

Prepare Addendum

Draft and attach to contract file for review

02

Verify License

Confirm validity with state licensing board

03

Execute Signatures

Collect signed and dated acknowledgments

04

Store Record

Archive in document management system

eSignature Vendor Comparison for Executing This Addendum

A concise vendor feature and price snapshot to help compare common capabilities and compliance features; signNow appears first per 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 trial Varies Varies Varies Varies
Bulk Send Yes Yes Yes Yes Varies
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No
Envelope Cap No cap 100 envelopes/user/year Varies Varies Varies

Frequently Asked Questions and Troubleshooting

Common questions and concise answers to help resolve execution, verification, and storage issues for the addendum.


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