Can a concessions agreement be signed electronically?

Yes. Electronic signatures are enforceable under the ESIGN Act (15 U.S.C. ch. 96) and UETA where adopted; however, confirm lender acceptance and any consumer consent requirements under 15 U.S.C. §7001(c) for consumer-facing records before relying solely on e-signatures.

Do lenders require written approval for concessions?

Many lenders require written notification or formal acknowledgement that concessions comply with underwriting limits. Submit the addendum and supporting documentation early; failure to obtain lender consent can delay funding or necessitate revised closing figures.

Is notarization or witness signature required?

Not typically required for a concessions addendum itself, but state or lender rules may require notarization or witnesses for specific deed or power changes. Check local recording requirements and confirm whether lender or county registrar requires notarization or witnesses.

How are concessions reflected at closing?

Credits appear on the Closing Disclosure and settlement statement as seller-paid items reducing the buyer's cash-to-close or adjusting prepaid expenses. Ensure timely delivery to title and lender to allow proper calculation and avoid last-minute adjustments or funding holds.

What about tax reporting obligations?

Concessions can affect year-end reporting for seller and buyer depending on the nature of credits; retain records for at least three years to meet IRS recordkeeping guidance (IRC §6501(a)), and consult tax counsel for complex or material concessions.

Can remote notarization be used for the addendum?

Remote Online Notarization (RON) is authorized in most states with varying requirements for identity proofing and audio-video recording; verify whether your state permits RON for real estate documents and whether the lender accepts RON-notarized addenda before using it.

Electronic Signature
Templates
Finance
Seller's Concessions Agreement

Seller's Concessions Agreement

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SELLER'S CONCESSIONS AGREEMENT

This Seller's Concessions Agreement (the Agreement) is entered into by the parties identified below to amend and supplement the Purchase Agreement referenced herein. Seller Name: and Buyer Name: .

Purchase Agreement Date: | Purchase Price: $

Property

Property Address

Concessions

The Seller agrees to provide the following concessions, to be applied as a credit at closing unless otherwise expressly stated below. Concessions are to be applied to closing costs, prepaid items, repairs specifically identified herein, or other permissible items identified by the parties and escrow.

Description

Amount (USD)

Subtotal Concessions:

Other Credits (specify):

Total Concessions:

Application and Limitations

All concessions shall be applied as a credit on the settlement statement at closing and shall not result in cash disbursement to Buyer unless expressly permitted by applicable lending requirements and escrow instructions. Seller acknowledges that concessions may affect loan underwriting and agrees to cooperate with Buyer and Buyer’s lender to provide documentation reasonably required for loan approval.

Concessions are conditioned upon: (a) execution of this Agreement by both parties; (b) closing of the transaction; and (c) approval by the buyer’s lender where required. If the transaction does not close, or lender approval is withheld and cannot be cured, concessions shall be null and void and neither party shall have further obligation hereunder.

Escrow / Title Instructions

Seller instructs escrow/title to apply the concessions as follows (select one):

Apply as credit toward Buyer closing costs and prepaid items

Place in repair escrow to satisfy identified repairs

Other (specify):

Representations, Warranties and Indemnity

Seller represents and warrants that: Seller has full authority to bind the concessions set forth herein; no other person or entity’s consent is required to provide the concessions; and to Seller’s knowledge, there are no liens or encumbrances that will prevent the application of concessions as directed. Each party agrees to indemnify and hold harmless the other party and escrow from claims arising from that party’s breach of this Agreement.

Default and Remedies

A material breach of this Agreement by either party shall entitle the non-breaching party to pursue all remedies available at law or equity, including specific performance where appropriate. If Seller fails to perform the concessions required by this Agreement at closing, Buyer may seek recovery from Seller for actual damages incurred as a result of Seller’s failure to perform.

Notices

All notices required or permitted by this Agreement shall be in writing and delivered to the addresses set forth below (or such other address as either party designates in writing).

Seller Contact Information Buyer Contact Information

Miscellaneous

This Agreement constitutes the entire agreement between the parties regarding the concessions described herein and supersedes any prior oral or written agreements on that subject. This Agreement may be amended only by a written instrument signed by both parties. If any provision of this Agreement is held invalid, the remaining provisions shall remain in full force and effect.

Additional Terms or Conditions

Acknowledgment

Each party acknowledges that they have read and understood this Agreement, had the opportunity to seek independent legal counsel, and agree that the signatures below shall constitute binding acceptance of the terms set forth herein.

Seller

Printed Name:

By:

Date:

Buyer

Printed Name:

By:

Date:

What a Seller's Concessions Agreement Is

A Seller's Concessions Agreement is a written amendment to a real estate purchase contract where the seller agrees to pay specified buyer costs at or before closing. Typical concessions cover closing costs, prepaid items, repairs, or seller-paid credits applied toward the buyer's loan or settlement statement. The agreement defines the dollar amounts or percentage caps, lists which expenses are eligible, and sets timing for disbursement. It is incorporated by reference into the primary purchase contract and becomes enforceable when signed by both parties and delivered per contract notice provisions.

Why a Clear Concessions Addendum Matters

A Seller's Concessions Agreement clarifies financial responsibilities, improves lender and closing agent coordination, and can bridge price gaps to facilitate sale approvals. Clear terms reduce post-closing disputes and ensure that concessions are acceptable to mortgage underwriters and recorded accurately on the closing statement.

Who Drafts, Reviews, and Relies on Concessions Addenda

Typical users include listing and buyer agents, lenders, closing agents, title companies, and the buyer and seller themselves.

Listing and buyer agents negotiate concession terms and communicate requirements to clients and lenders.
Lenders verify that concessions meet underwriting limits and note allowable credits on loan estimates.
Title and closing agents prepare settlement statements and apply concessions at closing per instructions.

Well-drafted concessions reduce closing delays and create a clear audit trail for compliance and post-closing reconciliation.

Key Roles and Responsibilities

Listing Broker

The listing broker prepares or reviews the amendment, coordinates with the buyer's agent and lender, documents the concession in the transaction file, and ensures the addendum integrates with the purchase contract and disclosure obligations.

Buyer or Lender

The buyer or lender confirms concessions meet underwriting limits, evaluates impact on loan-to-value and cash-to-close, and may require written evidence or lender acknowledgment before releasing funds.

Step-by-Step: Complete and Execute the Addendum

Follow these steps to complete and execute a Seller's Concessions Agreement accurately and efficiently online or in person.

01

Prepare Contract: Confirm the purchase contract permits concessions.
02

Specify Terms: List exact items, amounts, and caps.
03

Obtain Approvals: Get signatures from seller and buyer.
04

Deliver & File: Provide executed agreement to lender and title.

Set Up an Online Concessions Workflow

Configure an online concessions workflow to collect signatures, route approvals, and capture lender documentation securely.

Field	Configuration
Template Name	Seller Concessions Addendum template
Signer Order	Seller then buyer, lender notified concurrently
Required Attachments	Loan estimate, title commitment, estimate of repairs
Authentication Method	Email link or SMS code option

Where to Send the Executed Addendum

Routing and submission options for executed Seller's Concessions Agreements vary by transaction and lender requirements.

To Lender: Email or upload to lender portal for underwriting review.
To Title: Deliver executed addendum to title/escrow agent for closing file.
Recordkeeping: Retain final signed copy in transaction file and digital archive.
Lender Conditions: Document restrictions and lender approval conditions before closing.

Technical and Security Considerations for Electronic Submission

Electronic submission requires compliance with lender and state rules, and consideration of authentication and audit trail requirements.

File Formats: PDF or DOCX preferred
Integrations: Connects with title, CRM, and storage
Security: TLS in transit, AES-256 at rest

Core Elements of a Professional Concessions Addendum

Essential parts of a professional Seller's Concessions Agreement that lenders, title companies, and parties expect to see to ensure enforceability and clear closing instructions.

Parties

Identify seller and buyer with full legal names, contact information, and role in the transaction; include license numbers for brokers when required by state law and the primary purchase contract reference.

Scope

Describe precisely which closing costs, prepaid items, concessions, or repairs the seller will pay; indicate whether credits apply to cash-to-close, loan origination fees, or escrow items.

Amount

State the exact dollar amount or percentage cap, whether it is a per-item maximum or aggregate cap, and note rounding rules and currency.

Eligible Costs

List each eligible expense type (e.g., title fees, recording, HOA transfer fees, agreed repairs) and exclude items not covered to avoid ambiguity at settlement.

Lender Conditions

Include any lender-required language or limitations, and state that concessions are subject to underwriting approval; require written lender acknowledgment where necessary for funding.

Signatures

Provide signature blocks for seller, buyer, and any authorized representatives with printed names, dates, and witness or notary sections when required by state law.

Supporting Documents and Export Formats

Typical supporting documents and output formats you should prepare alongside the Seller's Concessions Agreement for lender and title review and recordkeeping.

Final PDF

Export the fully executed agreement as an ISO-compatible PDF to preserve layout, signatures, and the audit trail for lenders and title companies.

Closing Disclosure

Include a version showing concessions applied to the buyer's Closing Disclosure so lenders and buyers see adjustments to cash-to-close and prepaid amounts.

Repair Invoices

Attach documented repair estimates or invoices to substantiate seller-paid repairs and make clear the scope and timing of any remedial work.

Lender Acknowledgment

Provide written lender acknowledgement or email confirming acceptability of concessions when required to prevent funding delays at closing.

Required Agreement Data at a Glance

Seller Name: Full legal name as on ID

Buyer Name: Full legal name as on purchase contract

Property Address: Street, city, state, ZIP

Concession Amount: Specify dollar amount or percentage

Eligible Items: List closing costs, repairs, prepaid expenses

Effective Date: Enter as MM/DD/YYYY format

Timing and Deadlines to Avoid Funding Delays

Key deadlines and timing expectations for concessions, lender approvals, and inclusion on closing statements to avoid funding delays.

Contract Deadline:

Meet amendment deadline specified in purchase contract.

Lender Approval:

Submit concessions before lender's underwriting cutoff date.

Closing Disclosure:

Ensure credits are itemized on Closing Disclosure three days before closing.

Final Walkthrough:

Address repair credits before final walkthrough and report.

Recording:

Record deeds and related documents per local escrow timelines.

Key Milestones from Agreement to Funding

Sequential milestones from negotiation through funding where concessions affect the closing timeline and lender conditions.

01

Negotiate Terms

Agree concession amounts and eligible items with buyer.

02

Document Amendment

Prepare written Seller's Concessions Agreement and attach to contract.

03

Obtain Lender Consent

Submit addendum for lender review and obtain written approval.

04

Closing & Funding

Apply concessions on settlement statement and confirm funding conditions.

Common Mistakes to Avoid

Vague language such as 'reasonable repairs' leads to disputes and lender rejection; specify scope, dollar limits, and contractor standards.
Failing to obtain lender written approval for concessions can delay funding or require reallocation on closing statements.
Neglecting to attach supporting invoices or repair estimates results in last-minute adjustments and potential claims post-closing.
Mismatched names or dates across documents can block recording and trigger title exceptions; verify all entries before signing.

Potential Consequences of Incorrect or Untimely Addenda

Lender Denial: May require renegotiation or reduced funding

Funding Delay: Closing postponed pending approvals

Tax Reporting: Affects year-end reporting, consult IRS rules

Recording Issues: Could prevent deed recording

Contract Breach: Potential litigation or damages

Escrow Disputes: Escrow holdbacks or claims

Practical Examples from Transactions

Real-world examples showing how concessions are used to resolve valuation gaps, repair contingencies, or buyer cash shortages.

Switching Offers

A listing agent used concessions to lower buyer's upfront costs when appraisal came in below contract price, preserving the sale without reducing the asking price.

Seller paid $3,000 toward closing.
The concession was documented in a signed amendment, provided to the lender and title, and the transaction closed on schedule after lender acceptance and updated closing disclosure and county recording completed without exception.

Repair Credit

A buyer negotiated a seller credit after inspection to cover HVAC replacement, avoiding escrow holdbacks and ensuring the buyer's lender accepted the revised closing figures.

Credit capped at $4,500 with receipts required.
The seller attached invoices and a contractor estimate to the addendum; title accepted the documentation and funds were applied at closing without delay and the lender confirmed no further underwriting conditions.

eSignature Vendor Comparison for Executing Concessions Addenda

Compare common eSignature providers for executing Seller's Concessions Agreements, focusing on price, bulk send, audit trails, HIPAA ability, and envelope limits.

	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
Envelope Cap	No envelope cap	100 envelopes/user/year	Varies by plan	Varies by plan	Varies by plan

Frequently Asked Questions

Answers to frequent questions about drafting, signing, and submitting Seller's Concessions Agreements, including e-signature and lender concerns.

Need help? Contact support

Can a concessions agreement be signed electronically?
Yes. Electronic signatures are enforceable under the ESIGN Act (15 U.S.C. ch. 96) and UETA where adopted; however, confirm lender acceptance and any consumer consent requirements under 15 U.S.C. §7001(c) for consumer-facing records before relying solely on e-signatures.
Do lenders require written approval for concessions?
Many lenders require written notification or formal acknowledgement that concessions comply with underwriting limits. Submit the addendum and supporting documentation early; failure to obtain lender consent can delay funding or necessitate revised closing figures.
Is notarization or witness signature required?
Not typically required for a concessions addendum itself, but state or lender rules may require notarization or witnesses for specific deed or power changes. Check local recording requirements and confirm whether lender or county registrar requires notarization or witnesses.
How are concessions reflected at closing?
Credits appear on the Closing Disclosure and settlement statement as seller-paid items reducing the buyer's cash-to-close or adjusting prepaid expenses. Ensure timely delivery to title and lender to allow proper calculation and avoid last-minute adjustments or funding holds.
What about tax reporting obligations?
Concessions can affect year-end reporting for seller and buyer depending on the nature of credits; retain records for at least three years to meet IRS recordkeeping guidance (IRC §6501(a)), and consult tax counsel for complex or material concessions.
Can remote notarization be used for the addendum?
Remote Online Notarization (RON) is authorized in most states with varying requirements for identity proofing and audio-video recording; verify whether your state permits RON for real estate documents and whether the lender accepts RON-notarized addenda before using it.

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