A signatory is a person (or sometimes an organization), who signs an agreement or contract. If an organization is a signatory, a representative signs their name on behalf of the organization. Signatories must be the age of majority and involved in the execution of a document. For instance, if your buyer and seller create and sign a contract on the back of napkin they are both signatories.

A signatory can refer to a:

• Human
• Corporation
• Limited liability corporation
• Non-profit organization
• Government body
• But not a Trust!!!

If a company is involved in a contract, such as the sale of condo, an individual who has legal authority would sign the document on the company’s behalf. A company signatory can be specified through a Corporate Resolution, stating that the director or officer is able to sign documents for the corporation.

If a party to a contract cannot be present for any reason you can create a limited or full Power of Attorney and appoint a representative to sign real estate contract on their behalf. But understand creating a Power of Attorney takes time, so you should plan ahead and make sure they have this document ready before they make an offer or list the home. 

In addition to signatories some contracts may require a witnesses or notary public to sign to authenticate a document.  Witnesses are neutral third parties who verify each signatory’s signature. They do not have to be familiar with the terms of the agreement. Their signatures simply prove a contract’s validity and authenticity in a court of law. A witness cannot be related to any of the signatories and cannot benefit from the contract. For example, a seller could not act as a witness for the buyers.

A notary public is a state-licensed official who authorizes the identity of each signatory and witnesses the execution of a document. A notary also administers oaths, certifies copies of documents, and provides acknowledgements. Whether or not a document requires notarization depends on state requirements and financial institution regulations.  Generally, when a notary public verifies the execution of a document, it becomes a “self-authenticating” document, meaning it is not necessary to prove the validity of the signatures in court. 

How Does a client Sign a Contract?

 In most cases  they would sign the same way they sign checks, government identification, or other documents. For instance, if they go by your middle name on paper and in person, sign that way unless otherwise stated. 

When they are signing a document on behalf of someone else or an entity, make sure they sign in that capacity – As an Agent.  Below is non-exhaustive list of roles agents can hold, and how they sign a contract in that role.  These are only examples, if you are unsure if they will work in your case –stop and call me, I will help you out.

 How to sign as an Attorney-in-fact

When singing as an attorney-in-fact you are signing based on the power a person has given you under the Power of Attorney document.  Therefore, it is best to sign “Dorothy Gale, by (Client Name) under Power of Attorney” or “(Client Name), attorney-in-fact for Dorothy Gale.”

How to sign as a Manager or Owner of a LLC or Corporation

Because companies cannot sign for themselves, the signature identifies the person signing, the title and authority of the person, and the name of the contracting party. The proper signature is “Name, Title, Name of Company.”  For example, ” Montgomery Scott, Vice President of Engineering | Enterprise NX-01, INC.” Contact me for the Corporate Resolution need to make this work.

How to sign as a Trustee

When signing anything on behalf of the trust, always sign as (Client Name), as Trustee or (Client Name), Trustee.  By signing as Trustee, the signatory will not be personally liable for that action as long as that action is within the scope of your authority under the trust. If the trustee does not sign as “trustee” and the contract does not specifically exclude liability, then a trustee may be personally liable on contracts entered into in the trustee’s fiduciary capacity.  See me for the contract language needed to prevent this.

How to sign as an Personal Representative (Executor or Administrator)

There are a number of different names for a Personal Representative they all mean the same thing generally, the difference being gender.  So, when signing on behalf of the estate the proper signature is “Name, Title with regard to the estate.” Depending on the language you want to use or the language of the document appointing you could use any of the following: Pavel Chekov, Personal Representative; Pavel Chekov, Executor; Christine Chaple Executrix; Pavel Chekov, Administrator; or Christine Chaple, Administratrix.

 When you sign a contract, best practices suggest you use a color other than the color of the agreement terms to reinforce authenticity and prevent anyone from creating fraudulent copies of the contract. Blue is the norm. Do not use a pencil because someone could tamper with it, and avoid red ink because it can be hard to read.

 During the official signing of the document, each party must be of sound mind, meaning they are capable of understanding the terms of the contract and not under the influence of drugs or alcohol.

 Furthermore, you should take your time to read the entire agreement before signing. Ensure you have a complete understanding of the terms and ask for clarification on anything that is unclear before putting your pen to paper.

 If you have any questions before you sign call Rivertown Law at 843.488.5600 and one of our attorneys can answer your questions.