Can this agreement be e-signed?

Yes. Electronic signatures are valid under the ESIGN Act (15 U.S.C. ch. 96) and UETA where adopted; ensure the signer consents to electronic records and you retain an audit trail showing intent, attribution, and the record.

Do seller concessions affect loan approval?

They can. Lenders or investors set limits on allowable concessions by loan type; disclose concessions early so underwriters can confirm acceptance and adjust Closing Disclosure figures.

Is notarization required?

Generally not for the concession agreement itself, but related closing documents or deeds often require notary acknowledgment and state-specific witness counts prior to recording.

Who must sign the document?

All parties who agree to the concession — typically the seller and buyer — must sign. If an agent or attorney signs by power of attorney, include a valid POA and check lender acceptance.

How do I update concessions after signing?

Execute a written amendment signed by all original parties; notify the lender and escrow immediately so the Closing Disclosure and settlement statement reflect changes before funding.

How long should I retain executed copies?

Retain for at least three years for tax purposes, seven years for many real estate matters, and longer if state or lender rules require it; consult retention policies for your jurisdiction.

Electronic Signature
Templates
Real estate
Seller Concession Agreement

Seller Concession Agreement

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

SELLER CONCESSION AGREEMENT

This Seller Concession Agreement is made and entered into on , by and between the undersigned Seller and Buyer concerning the property described below.

Parties

Seller Name Seller Contact Address Seller Phone / Email Buyer Name Buyer Contact Address Buyer Phone / Email

Property Identification

Property Address Parcel / APN Number Legal Description

Concession Terms

Seller hereby agrees to provide a concession to Buyer in the total amount of $ (the "Concession"). The Concession shall be applied as described below and subject to the conditions set forth in this Agreement.

Purpose of Concession (check all that apply)

Credit to Buyer’s closing costs or prepaids
Repair credit to address inspection items
Temporary interest rate buydown
Other — describe below

If Other, describe

The Concession shall be applied at closing as a credit against Buyer’s closing costs and/or purchase price adjustments unless otherwise specified below. If any portion of the Concession is required to be paid prior to closing, Seller authorizes disbursement to escrow or the designated third party only as set forth herein.

Application of Concession Cap or Percentage Limit (if any)

Fixed cap of $ Up to of the purchase price

Conditions Precedent

Payment or application of the Concession is expressly conditioned upon the following (check all that apply and complete related fields):

Buyer obtaining mortgage loan approval by funding date
Appraisal equal to or greater than the purchase price
Resolution of inspection items within days of contract ratification
Other condition(s) — describe below

If Other Condition, describe

Effect on Purchase Contract

The Concession is intended to be a credit applied as set forth above. The undersigned parties agree that:

The purchase price remains unchanged and the Concession is a separate credit at closing.
The purchase price will be reduced by the amount of the Concession for purposes of financing, transfer tax, or other purposes where applicable.

Representations, Warranties and Covenants

Seller represents and warrants that: (a) Seller is authorized to make the Concession; (b) the Concession complies with applicable lending and regulatory limits; and (c) except as expressly set forth herein, Seller has no further obligation to Buyer with respect to the Concession. Buyer represents that the Concession will be applied only as permitted by Buyer’s lender and applicable law.

Disclosures

The parties acknowledge the following known conditions of the property (select Yes or No for each). Seller shall provide any required written disclosures under applicable law.

Lead-based paint present: Yes No

Mold or water intrusion: Yes No

Prior structural damage or repairs: Yes No

If Yes to any, provide explanation

Indemnification and Remedies

Each party shall indemnify and hold harmless the other from any claims, losses, liabilities or expenses arising from breaches of the representations, warranties or covenants contained in this Agreement. In the event Seller fails to honor the Concession as agreed, Buyer’s remedies shall include specific performance, payment of the Concession amount at closing, or pursuit of damages consistent with the underlying purchase contract, subject to any limitations therein.

Notices

All notices under this Agreement shall be in writing and delivered to the addresses set forth below (or such other addresses as a party may thereafter designate in writing).

Seller Notice Address Buyer Notice Address

General Provisions

This Agreement constitutes the entire agreement between the parties with respect to the Concession and supersedes all prior discussions and agreements. No modification shall be effective unless in writing and signed by both parties. If any provision is found invalid, the remainder shall remain in full force. This Agreement shall be governed by the laws of the state identified below.

Governing Law State

Acknowledgement

By signing below, the parties acknowledge that they have read and understand this Seller Concession Agreement, that the Concession is voluntary, and that the Concession will be applied in accordance with lender requirements and applicable law. The parties further acknowledge that certain lenders may require adjustments to the manner in which the Concession is applied; execution of this Agreement does not guarantee lender approval of such application.

Seller Printed Name:

By:

Date:

Buyer Printed Name:

By:

Date:

What a Seller Concession Agreement Is and when it applies

A Seller Concession Agreement documents concessions a property seller agrees to provide a buyer at or before closing, typically covering closing costs, repairs, or credits applied to the buyer’s loan. It supplements the purchase contract and clarifies amounts, limits, and conditions so lenders and title companies can process closing statements accurately. The agreement records who pays which items, any caps on total concessions, and whether credits reduce the purchase price or fund buyer expenses, and it becomes part of the closing package once executed by the parties.

Why a clear Seller Concession Agreement matters

A concise agreement reduces closing delays and lender rejections by stating concession amounts, permitted uses, and any lender or investor limits. It protects buyer and seller expectations and creates an auditable record for title, escrow, and underwriting review.

Who typically prepares and signs this agreement

Real estate agents, closing attorneys, title officers, mortgage lenders, and buyers or sellers use this form to document negotiated credits and closing cost arrangements.

Listing agents coordinating seller concessions with buyer and lender during offer negotiations.
Buyers and buyer’s agents confirming credit amounts, limits, and conditions for underwriting.
Title and escrow officers ensuring concessions appear correctly on the closing disclosure and settlement statement.

Parties often route this form alongside the purchase agreement and closing disclosure so underwriters and escrow agents can verify compliance with lending rules prior to funding.

Step-by-step: how to complete and finalize the agreement

Follow these sequential steps to prepare, review, and execute a Seller Concession Agreement that lenders and title companies can process without delay.

01

Prepare draft: Enter parties, property, concession type, and amount.
02

Confirm lender limits: Check lender or investor concession caps before finalizing.
03

Review with title: Have title/escrow confirm settlement statement inclusion.
04

Execute and distribute: All parties sign; deliver copies to lender and escrow.

How the Seller Concession Agreement moves through closing

This flow shows typical routing from negotiation to funding so each party knows when to expect and act on the agreement.

Negotiation: Seller and buyer agree to concession terms.
Document preparation: Agent or attorney drafts the agreement.
Lender review: Lender verifies acceptability and limits.
Escrow integration: Title/escrow lists concession on closing statements.

Typical online workflow settings for eSigning and routing

Configure these workflow settings when sending the agreement by eSignature to preserve audit trails and meet lender authentication preferences.

Field	Configuration
Signature fields	Required for each party
Date fields	Auto-fill MM/DD/YYYY
Recipient order	Sequential or parallel routing
Authentication	Email + SMS or ID verification

Technical considerations for eSigning and eDelivery

Ensure the chosen eSignature platform supports audit trails, secure storage, and the authentication level your lender requires before sending.

Document format: PDF or DOCX supported
Authentication: Email, SMS, KBA options
Integrations: Works with title and loan systems

Retain executed copies in a secure repository with export options (PDF/A) and an audit trail for underwriting, audit, and potential post-closing review.

Core elements every professional Seller Concession Agreement should include

These six elements reduce ambiguity and help lenders, title officers, and escrow agents process the concession correctly at closing.

Parties

Full legal names and contact details for seller and buyer so title and underwriting match identity records and avoid recording issues.

Property

Complete property description and address matching the deed and loan documents to ensure accurate settlement statement entry and recording.

Concession details

Clear description of what is paid (closing costs, prepaids, repairs) and if the concession is a credit or price adjustment.

Monetary terms

Exact dollar amount or formula, any cap, and whether funds pass through escrow or reduce proceeds to seller.

Lender acknowledgment

Statement noting concession is subject to lender approval and may be adjusted to meet underwriting rules.

Signatures and dates

Signature blocks for all parties with dates and, if required, witness or notary lines to satisfy state or lender requirements.

Security and compliance considerations for electronic agreements

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

Audit trail: Time stamp, IP, and action log

ESIGN / UETA: Compliant with ESIGN and UETA

HIPAA readiness: BAA available where needed

Access controls: SSO and MFA options available

Standards: SOC 2 Type II and ISO 27001

Primary risks and potential penalties for errors

Lender denial: Loan funding delays

Recording refusal: Escrow cannot close

Tax implications: Misreported credits affect returns

I-9 noncompliance: Documentation fines

Fraud exposure: Intentional misstatement penalties

Legal penalties: Contract disputes and sanctions

Common mistakes to avoid when preparing this agreement

Failing to verify lender or investor concession limits before signing leads to last-minute changes and funding delays.
Using vague language like 'reasonable repairs' without a dollar cap or scope invites disputes and title rejections.
Mismatching party names or property descriptions with loan and deed documents causes title and recording errors.
Not delivering the executed agreement to escrow and the lender early enough to reflect concessions on the Closing Disclosure.

Typical eSignature vendor pricing and capability snapshot (signNow first)

Select an eSignature provider based on cost, required features, and compliance needs. This table compares starter pricing and common capabilities with signNow listed first.

	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	Varies	Varies	Varies
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 Seller Concession Agreements

Answers to common execution, lender, and recordkeeping questions for Seller Concession Agreements, with practical guidance for closing teams and agents.

Need help? Contact support

Can this agreement be e-signed?
Yes. Electronic signatures are valid under the ESIGN Act (15 U.S.C. ch. 96) and UETA where adopted; ensure the signer consents to electronic records and you retain an audit trail showing intent, attribution, and the record.
Do seller concessions affect loan approval?
They can. Lenders or investors set limits on allowable concessions by loan type; disclose concessions early so underwriters can confirm acceptance and adjust Closing Disclosure figures.
Is notarization required?
Generally not for the concession agreement itself, but related closing documents or deeds often require notary acknowledgment and state-specific witness counts prior to recording.
Who must sign the document?
All parties who agree to the concession — typically the seller and buyer — must sign. If an agent or attorney signs by power of attorney, include a valid POA and check lender acceptance.
How do I update concessions after signing?
Execute a written amendment signed by all original parties; notify the lender and escrow immediately so the Closing Disclosure and settlement statement reflect changes before funding.
How long should I retain executed copies?
Retain for at least three years for tax purposes, seven years for many real estate matters, and longer if state or lender rules require it; consult retention policies for your jurisdiction.

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