358: Who Actually Has to Sign? How to Protect Your Business
Have you ever finished a transaction only to discover you had the wrong person on your buyer representation agreement? Or listed an estate property without confirming who actually had legal authority to sign? Verifying identity in real estate transactions is one of the most important habits you can build, and the stories in this episode will make sure you never forget why.
In Episode 358, Katy and Alissa dig into a topic that sounds like paperwork but is really about protecting your commission, your license, and your reputation. From buyer rep agreement gaps to listing fraud on vacant land, this episode covers the real scenarios where missing a signature or skipping identity verification can cost you everything.
The Buyer Rep Agreement Is Only as Strong as the Names on It
Katy opens with a story from a colleague who had a signed buyer representation agreement with a mom and dad purchasing a home for their college-age daughter. While the parents were out of town, the daughter browsed Zillow, clicked the contact agent button, toured a house with a different agent, and signed her own buyer rep agreement. When everyone decided they wanted to buy that house, two agents, two agreements, and two brokers were suddenly in conflict. The result was a forced 50/50 commission split and a painful lesson about making sure every person who could end up on title is named on your buyer rep from the beginning.
The fix, according to agents in the Hustle Humbly Community, is simple: ask who will be on all the legal documents and get all of their full legal names before you do anything else. Verifying identity in real estate transactions starts at that very first conversation, not at closing.
What Happens When Only One Party Signs
Alissa shares her own recent story about a friend she had known for years through a volunteer group who finally called ready to buy. She wanted to see a $1.2 million listing, and her husband said to go ahead and report back. Alissa sent the buyer rep agreement to both parties immediately. The wife signed. The husband did not. The night before a carefully arranged showing, Alissa was texting at 9pm trying to get a response. When the husband finally communicated through his wife that he was not going to sign and was upset that she had, Alissa canceled the appointment and told her client clearly: when both of you are on the same page, reach out and we will do a proper consultation.
The next morning the wife came to the showing anyway, since she had signed, and they walked the house together. Over coffee, Alissa learned that the husband had a bad experience years ago where an agent worked with them for nine months and then lost the business when he made a golf-course handshake deal with a different agent. Alissa’s response? That is exactly why the buyer representation agreement exists now. It protects agents from that exact situation. And no matter who he wants to work with, someone is going to ask him to sign one because it is the law.
When a Dad Swoops In at Closing
Alissa also shares a quieter version of this problem. She had a buyer under contract, everything moving along smoothly, until the lender called to say there was a tax return issue that would require an eight-week extension. The buyer called his dad. Dad paid cash. They closed. But when Alissa submitted her compliance paperwork, her broker flagged it immediately: the buyer rep agreement was with the wrong person. Dad had ended up on title as a co-purchaser, and his name was nowhere on Alissa’s agreement. She had to send it to dad after the fact to get his signature.
Nobody could have predicted that scenario at the buyer consultation. But the lesson holds: consider asking upfront if there is anyone else who might possibly end up involved in the purchase, even if it seems unlikely at the time.
Estate Sales and the Importance of Knowing the Legal Signer
When it comes to listing inherited or estate properties, the risks are different but just as serious. Katy shares a story about a seller who called to list a property and identified himself as the executor. He had three siblings. Katy asked for a copy of the will and sent it immediately to her title attorney to confirm who the legal signers were. It turned out the seller and his brother were co-executors. Both had to sign. The seller had not realized this and was genuinely surprised. Thankfully, the brother was willing, and the transaction moved forward.
Katy also shares a situation where she had the correct signer, listed the property, and received an offer, only to be told by the title company that the succession was not legally complete. The buyers had to extend ninety days for the succession process to finish before the home could sell. Reaching out to the succession attorney before listing, and confirming that the property is actually in a position to be sold, is now a non-negotiable step.
Listing Fraud on Vacant Land
One of the fastest-growing scams in real estate involves vacant land. Someone calls from out of state claiming to own a piece of property and asks you to list it. They are not who they say they are. They sign the listing agreement under a false identity, and if you do not verify who they are before proceeding, you could be complicit in a fraudulent transaction. Alissa shares that she once had someone attempt this with her. She kept asking questions and the red flags kept adding up.
The solution is straightforward: always ask for a copy of a government-issued ID before you list any property, especially vacant land. If the seller pushes back, you can simply explain that these are legal documents and verifying identity in real estate transactions is a standard part of your process. A legitimate seller will never have a problem with that request. Someone running a scam will.
Power of Attorney Misconceptions
Power of attorney situations come up more often than most agents expect, and there are a few important things to know. First, the process for obtaining a valid POA has become significantly more rigorous and expensive than it used to be. Title companies now require a verified notary from an approved network, which has actually reduced the number of people requesting it since it is no longer as simple as running to the grocery store for a quick signature.
Second, and this one surprises a lot of agents: you cannot do a power of attorney for a power of attorney. Katy shares a situation where a sibling had legal POA for their mother who was in memory care, and a second sibling could not make it to closing and asked if someone else could serve as their POA. That is not how it works. Everyone who needs to sign has to figure out a way to sign, whether by having a notary come to them or by getting to the closing table themselves.
Ask for the ID. Hold Your Ground.
If you take one thing from this episode, let it be this: no legitimate buyer or seller will refuse to provide a copy of their driver’s license or government-issued ID. When you frame it as a standard part of working with you, it becomes a non-issue for anyone who is serious. And if someone pushes back hard? That is information. It is either a sign that they are not a serious buyer, or it is a red flag worth paying attention to.
The same goes for holding your ground on the buyer representation agreement. When clients push back, default to your broker. Tell them your broker requires all parties involved to sign. That is true, it removes the personal element, and it sets the precedent for how the rest of the transaction will go. If you cave at the first resistance, you hand over control of your business to your client, and it is very hard to get it back.
Here’s what we cover in this episode:
- Why the buyer rep agreement is only as strong as the names on it
- How to find out who will be on title before you start showing homes
- What to do when only one party in a couple signs your buyer representation agreement
- The procuring cause problem that the buyer rep was designed to solve
- A first-hand story about a husband refusing to sign and how Alissa handled it
- When a dad pays cash at closing and suddenly you have the wrong buyer on your paperwork
- How to protect yourself when listing inherited or estate properties
- Why you need to ask for the will and contact the succession attorney before you list
- What happens when a succession is not complete and the property cannot legally sell
- Vacant land fraud and the growing scam targeting listing agents
- The truth about power of attorney and why you cannot do a POA for a POA
- Why asking for a driver’s license is not rude; it is just good business
- How to use your broker as a buffer when clients push back
- Toasting Syed, a Realtor in Virginia with an incredible story of growth and mindset
Key Quotes & Takeaways:
- “The question isn’t necessarily who’s the buyer. Who do you see on the title? Who is going to be on the title?” Katy
- “No one tosses up a fuss who is legit. If you say I need a copy of your driver’s license and they say no, push back. These are legal documents. I must verify your identity.” Alissa
- “If you cave at their first request, which goes against how you run your business, they are going to run the rest of the show.” Katy
- “This rep agreement is getting signed. It’s the law.” Alissa
- “Clear, sincere communication matters more than perfect English.” Syed, via Katy
Products, People & Previous Episodes Mentioned:
- Episode 190: Wire Fraud and Real Estate Fraud with Nikki (hustlehumblypodcast.com/190)
- Episode 317: Realtor Safety (hustlehumblypodcast.com/317)
- Hustle Humbly Community (hustlehumblypodcast.com/membership)
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Music:
Straight A’s by Connor Price
The Good Life by Summer Kennedy
Be The One by Matrika
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