Can a Real Estate Agent Sign on a Purchase Agreement on his Principal's behalf?

[Mike Karr]

Ca

I was employed at a real estate brokerage, and then left the company. I had a property in escrow before I left, and it closed after I left. Since I was the agent for the Seller, the Seller asked me sign to sign the original contract on his behalf, which I did. After that the owner himself signed all disclosures, addendum's, contingency removals, and closing paperwork. My old company now wants me to explain “why the signatures look different.” I am not sure if I can get in trouble for this. I figure this is a ploy for them to withhold paying me on the transaction. What should I say to them?

 

[tranquility]

Can a Real Estate Agent sign a purchase agreement on his principal's behalf? Well, it depends. If your written agency agreement gives you the power to sign, yes. If you are relying on the principal's verbal representation...

http://www.calblogofappeal.com/2007/10/26/beware-the-statute-of-frauds/

 

[latigo]

Ca

I was employed at a real estate brokerage, and then left the company. I had a property in escrow before I left, and it closed after I left. Since I was the agent for the Seller, the Seller asked me sign to sign the original contract on his behalf, which I did. After that the owner himself signed all disclosures, addendum's, contingency removals, and closing paperwork. My old company now wants me to explain “why the signatures look different.” I am not sure if I can get in trouble for this. I figure this is a ploy for them to withhold paying me on the transaction. What should I say to them?

If by “trouble” you meant the threat of being prosecuted for the felony crime of forgery by signing the seller’s name, no. A conviction would require proof beyond a reasonable doubt that the seller did not authorize you to do so.

As far as the legal effect of you signing on behalf of the owner - that is, did it fulfill the requirements of the statute of frauds? - that would depend on whether or not the seller somehow ratified such authorization. Which could be shown by a subsequent writing signed by the seller ratifying the act and/or acknowledging prior verbal consent or other documents signed by the seller relating to the purchase indicating knowledge and consent. See: Behniwal v Mix (2005) 133 CA4th 1048, 35 CR3d 162

So if the seller signs a document ratifying your act and that is the only issue standing between you and the commission, then you should obtain that written ratification and demand proper compensation.

But obviously you have learned a valuable lesson which is not to act on someone else’s behalf in without having in hand their signed consent. And then you should sign your name (not theirs) followed by “The authorized agent for ___________."

Now please explain why you didn’t learn of this at the real estate school you must have attended before being examined and licensed!