Can this document be signed electronically?

Yes. Electronic signatures are generally valid under the federal ESIGN Act (15 U.S.C. ch. 96) and UETA in most states, provided intent, consent, attribution, and record retention requirements are met. Exceptions like wills or certain court filings still require traditional execution.

Do I need a notary or witnesses?

Notarization or witnesses depend on state recording rules and the document's purpose. Many states require a notary acknowledgement for deeds; some require witnesses. Check local recorder or title instructions before execution.

What happens if the name is incorrect?

A mismatched name can cause recording rejection or create title defects. Correct errors with a corrective instrument or affidavit; consult title counsel to determine whether a reexecution or corrective deed is necessary.

How do I revoke the authority?

Revoke delegated authority by preparing a written revocation, notifying affected third parties, and recording the revocation if a recorded instrument originally granted the authority; consult counsel for state-specific requirements.

Are there risks to using templates?

Templates should be reviewed for jurisdictional and transaction-specific requirements. Missing notary language, incorrect legal descriptions, or absent supporting corporate documents can invalidate execution for recording purposes.

Which documents should accompany the agreement?

Typically include government IDs, corporate resolutions, trust documents, prior POAs, and the full legal description of the property. Title companies may request original notarized copies or certified electronic records.

Electronic Signature
Templates
Real estate
Real Estate Principal Agreement

Real Estate Principal Agreement

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

REAL ESTATE PRINCIPAL AGREEMENT

Parties and Date

This Real Estate Principal Agreement (Agreement) is made and entered into on by and between:

Principal (Property Owner) Principal Contact Address Principal Phone / Email Agent / Broker Agent Contact / License

Property Identification

Street Address Parcel / APN Number Legal Description

Appointment and Authority

Principal hereby appoints Agent as Principal's exclusive real estate agent with full authority to market, negotiate offers, and present contracts to sell the Property on the terms set forth herein. Unless otherwise terminated in this Agreement, Agent's authority begins on and ends on .

Listing and Financial Terms

Listing Price Commission

Principal authorizes Agent to accept earnest money deposits on Principal's behalf. Escrow agent for deposit: . Standard deposit amount to be held in escrow is payable within days after accepted offer.

Offers, Acceptance, and Escrow

Agent will present all written offers to Principal promptly. Principal's acceptance of any offer must be evidenced in writing. Upon acceptance, the deposit will be handled as specified above and placed in a neutral escrow, where funds will be disbursed in accordance with the purchase contract and escrow instructions.

Inspections and Contingencies

Buyer contingencies, including inspection and financing, shall be those negotiated in the purchase contract. Principal shall permit reasonable inspections and access. Seller agrees to disclose material defects known to Principal. Inspection period (if no contract term is specified): days.

Closing and Possession

Closing shall occur on or before unless otherwise extended by mutual written agreement. Possession to be delivered to buyer on , subject to obligations under the purchase contract.

Principal Representations and Disclosures

Principal represents that Principal is the lawful owner of the Property and has authority to enter this Agreement. Principal discloses the following known conditions (select applicable):

Lead-based paint present? Yes No

Mold / water intrusion history? Yes No

Prior material structural or fire damage? Yes No

Maintenance, Utilities and Insurance

Principal remains responsible for maintenance of the Property prior to closing, unless otherwise agreed in writing. Utilities shall be maintained by Principal until transfer of possession. Principal shall maintain casualty and liability insurance on the Property until closing.

Termination; Default; Remedies

This Agreement may be terminated by mutual written agreement or by either party upon material breach by the other party following ten (10) days' written notice and failure to cure. If Principal terminates this Agreement without cause during the listing term and a sale is procured by Agent within the protection period, Agent shall be entitled to the commission set forth herein. Remedies are cumulative and the prevailing party is entitled to recover reasonable attorneys' fees and costs.

Indemnification

Each party shall indemnify and hold harmless the other from claims, losses, or liabilities arising from that party's breach of representations or failure to perform obligations under this Agreement, except to the extent caused by the indemnitee's own gross negligence or willful misconduct.

Governing Law; Entire Agreement

This Agreement shall be governed by the laws of the state in which the Property is located. This Agreement constitutes the entire agreement between the parties with respect to its subject matter and supersedes all prior oral and written agreements. No amendment is effective unless in writing and signed by both parties.

Notices

Principal Notice Address Agent Notice Address

Additional Terms

Principal

Printed Name:

By:

Date:

Agent / Broker

Printed Name:

By:

Date:

What the Real Estate Principal Agreement Is and when it’s used

A Real Estate Principal Agreement is a written instrument that establishes authority, responsibilities, and limitations for a principal in real estate matters such as listings, closings, property management, or agent appointments. The document typically identifies the principal and any agent or attorney-in-fact, describes the property and scope of authority, sets effective and expiration dates, and includes signature and notarization blocks. It may be used standalone or as an exhibit to a purchase, lease, escrow, or power of attorney document. Accuracy in names, property descriptions, and notarization is critical to preserve recording and enforceability.

Why this agreement matters for transactions and liability

A clear Real Estate Principal Agreement documents who may act on behalf of an owner, reduces third‑party risk, and helps title companies, escrow agents, and recording offices accept executed papers. When properly completed and, if required, notarized or witnessed, the agreement supports enforceability and reduces disputes over authority during closings, lease signings, property transfers, or lien actions.

Who commonly prepares, signs, and relies on the agreement

Typical users prepare and rely on a Real Estate Principal Agreement when an owner delegates authority or needs to document signing authority.

Real estate owners delegating authority for listing, sale, lease, or management.
Licensed brokers and agents receiving or documenting limited agency powers.
Title officers, escrow agents, and lenders verifying signing authority at closing.

The agreement helps parties confirm authority before recording, funding, or transferring title, and is frequently requested by title companies and escrow agents.

Who can sign and why their role matters

Principal / Owner

The principal is the property owner or authorized corporate officer. Their signature binds ownership interests; use the legal entity name exactly as recorded and provide supporting identification to avoid rejection by title or recording offices.

Authorized Agent

An agent, attorney‑in‑fact, or property manager acts under written authority. The agreement should state the scope, duration, and any limits; provide proof of appointment (POA or corporate resolution) when required by third parties.

Core elements to include in a professional agreement

A robust Real Estate Principal Agreement clearly identifies parties, specifies property, defines delegated authority, states effective dates, lists required actions, and includes signatures and notarization where needed.

Principal Identity

Full legal name of the owner or entity, with EIN or SSN for businesses when required and an attached copy of government ID for individual principals.

Property Description

Complete legal description, street address, parcel number, or exhibit reference so recording offices and title companies can unambiguously match the agreement to the property.

Scope of Authority

Clear, itemized powers granted (e.g., execute deed, sign closing documents, accept funds), including any express prohibitions or monetary limits.

Effective Term

Start and end dates or condition-based termination language, and whether authority survives closing or expires upon transfer.

Signatures and Notary

Signature blocks for principal and agent, dated signatures, and a notary acknowledgement or witness block if required for recording or state law.

Supporting Exhibits

Attach corporate resolutions, prior POAs, identification, or title documents referenced in the agreement to provide verification and evidence of authority.

Step-by-step: completing and executing the agreement

Follow these steps to prepare, verify, sign, and distribute the Real Estate Principal Agreement for use in a closing or management action.

01

Prepare the draft: Populate names, property description, and authority scope accurately.
02

Verify identity: Attach ID or corporate resolution to confirm signing authority.
03

Sign and notarize: Have parties sign in front of a notary if recording requires acknowledgement.
04

Distribute and record: Provide executed copies to title, escrow, and record as required.

How the executed agreement travels through a transaction

A typical flow takes the agreement from drafter to verifier, signer, notary, and then to title or recording. Each step confirms authority and prepares for closing or recording.

Drafting: Create a clear, complete agreement referencing exhibits and property.
Verification: Title and escrow review identification and corporate authorizations.
Execution: Parties sign; notary or witnesses authenticate when required.
Filing: Provide executed copy to recording office or escrow for closing.

Typical digital workflow settings for online completion

Configure a template with authentication, signing order, conditional fields, and notifications to streamline execution and verification.

Field	Configuration
Authentication	Email link or SMS code for signer verification
Conditional Fields	Show agent section only when agent name is entered
Signing Order	Principal first, then agent, then notary
Notifications	Email copies to title and escrow upon completion

Digital execution and platform interoperability

Choose a signing platform that supports secure delivery, audit trails, and the file formats your title and escrow partners accept.

Integrations: Salesforce, NetSuite, Google Workspace integrations available
File Formats: PDF, DOCX supported for templates and signed outputs
Authentication: Email, SMS code, or advanced signer verification available

Timing considerations and common deadlines

Key deadlines usually relate to effective dates, execution windows for closings, and recording priorities; local practice and escrow instructions will set final timing.

Effective Date:

The date entered governs when authority takes effect immediately

Execution Window:

Sign before scheduled closing to avoid funding delays

Recording Timing:

Record deeds promptly; county practices affect priority

Escrow Delivery:

Provide executed agreement to escrow or title before disbursement

Tax Reporting:

Retain documents for IRS and closing tax substantiation

Key milestones from drafting to recording

A sequential milestone view helps track responsibilities and avoid last‑minute issues during closing or transfer.

01

Draft and Review

Prepare and verify names, descriptions, and authority language

02

Identity Verification

Confirm IDs and corporate resolutions before signing

03

Execution and Notarization

Sign in presence of notary/witness as required

04

Distribution and Recording

Deliver copies to title, escrow, and county recorder

Common mistakes that delay acceptance or recording

Using a trade name or nickname instead of the principal's exact legal name leads to rejection by title or recording offices.
Providing only a street address instead of the full legal property description can prevent proper indexing and recording.
Missing notarization or incorrect notary wording frequently causes escrow to refuse funding or recording clerks to reject documents.
Failing to attach required corporate resolutions or proof of office for entity principals creates verification delays with title insurers.

Potential consequences of errors or improper authority

Recording Rejection: Delay or refusal to record

Voidable Acts: Contracts may be voidable for lack of authority

Title Risk: Title insurers may require indemnity

Tax Exposure: Incorrect reporting can trigger IRS penalties

Notary Defect: Improper notary can invalidate acknowledgement

Fraud Allegations: Misrepresentation risks civil liability

Security and compliance features to look for

Encryption: TLS 1.2/1.3 in transit; AES-256 at rest

Audit Trail: Timestamps, IP addresses, action history

Certifications: SOC 2 Type II and ISO 27001 available

HIPAA Support: BAA available for protected health information

21 CFR Part 11: Support for FDA-regulated recordkeeping

Accessibility: WCAG 2.0 Level AA compliance

eSignature vendor comparison for executing the agreement

Compare starting price, trial availability, bulk send, audit trail, and HIPAA support when selecting an eSignature provider for Real Estate Principal Agreements.

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

Real-world examples of principals using digital execution

Practical examples show how principals and agents use digital workflows to complete and validate authority remotely.

Martin Properties

A small property management firm adopted online signing to process authorizations remotely

Reduced in-person meetings and travel
The firm completed closings faster while retaining required notarizations and audit records for title and escrow review.

Optica Ventures LLC

A real estate investor used templated principal agreements for recurring property acquisitions

Centralized templates improved consistency
The investor attached corporate resolutions and executed agreements with secure audit trails to satisfy title insurers and lenders.

Practical tips to avoid delays and ensure enforceability

Follow these practices to reduce friction during closing and to ensure the agreement is accepted by title, escrow, and recording officials.

Verify Legal Names

Confirm the principal's exact recorded name with title documents or the state business registry; use that exact name in the agreement to avoid rejections.

Attach Authorizing Documents

Include corporate resolutions, trust certificates, or prior powers of attorney when an entity or trustee signs to prove authorized signatory status to title companies.

Use Clear Scope Language

Specify discrete actions the agent may take and any monetary or time limits; vague delegations invite disputes or insurer objections.

Maintain Original Records

Retain original signed and notarized documents or certified electronic copies in a secure archive to meet recorder, title, and audit requirements.

Frequently asked questions about Real Estate Principal Agreements

Answers to common execution, validity, and recording questions to help avoid delays or rework during closings.

Need help? Contact support

Can this document be signed electronically?
Yes. Electronic signatures are generally valid under the federal ESIGN Act (15 U.S.C. ch. 96) and UETA in most states, provided intent, consent, attribution, and record retention requirements are met. Exceptions like wills or certain court filings still require traditional execution.
Do I need a notary or witnesses?
Notarization or witnesses depend on state recording rules and the document's purpose. Many states require a notary acknowledgement for deeds; some require witnesses. Check local recorder or title instructions before execution.
What happens if the name is incorrect?
A mismatched name can cause recording rejection or create title defects. Correct errors with a corrective instrument or affidavit; consult title counsel to determine whether a reexecution or corrective deed is necessary.
How do I revoke the authority?
Revoke delegated authority by preparing a written revocation, notifying affected third parties, and recording the revocation if a recorded instrument originally granted the authority; consult counsel for state-specific requirements.
Are there risks to using templates?
Templates should be reviewed for jurisdictional and transaction-specific requirements. Missing notary language, incorrect legal descriptions, or absent supporting corporate documents can invalidate execution for recording purposes.
Which documents should accompany the agreement?
Typically include government IDs, corporate resolutions, trust documents, prior POAs, and the full legal description of the property. Title companies may request original notarized copies or certified electronic records.

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