When working with a buyer or seller that is a corporation, LLC, or other entity, it’s important to ensure the contract is completed correctly and that the person signing has proper authority.

1. Use the Full Legal Entity Name

Always enter the complete legal name of the entity exactly as it is registered, including:

• LLC, Inc., Corp., etc.

Example:

• ACME Holdings, LLC

• Sunshine Realty Group, Inc.

Do not abbreviate or guess—accuracy is critical.

2. Verify the Entity and Authority to Sign

Before moving forward, confirm:

• The entity is active and in good standing (through your state’s business registry)

• The individual signing has legal authority to act on behalf of the entity

Acceptable Proof May Include:

• Operating Agreement

• Corporate Resolution

• Authorization Letter

A Company Resolution is commonly used for LLCs. This document designates a specific individual (such as a manager or member) who is authorized to sign contracts on behalf of the entity.

3. Make Sure the Signature is Correct

The person signing must sign on behalf of the entity, not individually.

Correct Signature Format:

[Name], [Title], [Entity Name]

Example:

• John Smith, Manager, ABC Company, LLC

• Jane Doe, Authorized Member, XYZ Investments, Inc.

4. Avoid Common Mistakes

Signing Only a Personal Name

If the signer only signs their name (e.g., “John Smith”), they may be:

• Personally liable under the contract

• Not properly binding the entity

Incorrect Entity or Title

If the entity name or title is incorrect:

• The contract could be challenged

• It may become unenforceable

5. How to Enter the Entity in the Contract

When filling out the contract:

• The Buyer or Seller name field should list the entity:

  • Example: ACME, LLC

• The signature line should reflect the authorized signer:

  • Example: James B. Jones, Authorized Member of ACME, LLC

6. Using Dotloop for Entity Signatures

When sending documents through Dotloop:

• Add the authorized signer as the signer, not the entity itself

• Ensure the signer’s name and title are clearly reflected in the signature fields

• You may need to manually adjust the signature block to include:

  • Name

  • Title

  • Entity name

If needed, you can also include a note or instruction to the signer to ensure they sign in the correct format.

7. Best Practices

• Always verify authority before sending contracts

• Keep documentation (like resolutions) in your transaction file

• When in doubt, confirm with title, attorney, or your broker

• Ensure consistency between:

  • Contract name

  • Signature block

  • Supporting documents

Final Reminder

Working with entities adds an extra layer of responsibility. Taking the time to verify names and authority upfront helps prevent delays, legal issues, and contract disputes later in the transaction.