When meeting with clients to sign a listing agreement or the purchase agreement, it’s important to make sure you have the correct person signing the documents. Most of the time this will be clear but in some cases it’s not apparent who has the authority to sell the property.

If the property is owned by a Corporation or LLC you will need to look to the Articles of Incorporation or Organization, or the Operating Agreement if there is one, to determine who has the authority to bind the company to the contract.

If the owner of the property is deceased, who has the authority to sign on behalf of the estate will be determined by the type of succession.  It could be an administrator or executor, or if the succession is completed you would need the signatures of all the heirs that were placed in possession of the property. Court authority will be required in some circumstances when the succession is selling property.

Best practice is to always ask for a copy of the seller’s Act of Sale, which shows who purchased the property. If you’re in doubt about who needs to sign the purchase agreement, make a disclosure and make the contract contingent on all necessary parties signing off on the purchase agreement.

Jason