This form is used by an agent when a participant entering into an agreement is an entity, trust, estate or guardianship, or has granted a power of attorney, to verify the identity of the participant in a transaction and authority of the individual signing the agreement intending to bind the participant.
Verifying capacity to represent in an addendum
A broker and their agent representing a client for the sale, lease or financing of real estate will commonly encounter a participant in a transaction to be:
- an entity, such as a limited liability company (LLC), partnership or corporation;
- a trust, vested with the assets to buy, sell or lease real estate under a trust agreement;
- an estate, conservatorship or guardianship, approved by a court order; or
- an attorney-in-fact authorized to act under a power of attorney. [See RPI Form 252]
An agent uses the Verification of Capacity to Represent Addendum published by RPI when a participant entering into an agreement is an entity, trust, estate or guardianship, or has granted a power of attorney. The form verifies the identity of the participant in a transaction and authority of the individual signing the agreement intending to bind the participant. [See RPI Form 252]
The verification of the individual’s authority establishes the individual signing an agreement on behalf of a participant as the agent of the participant. It also verifies the individual is not personally liable for performance of the agreement entered into by their signature.
When the verified individual represents an entity as an investor or syndicate, a separate document written up by the LLC, partnership or corporation authorizing the individual to act on its behalf is attached. [See RPI Form 252 §2.1]
When the verified individual is a trustee holding title to property in a trust, the individual attaches a copy of their trust agreement. [See RPI Form 252 §2.2]
When the verified individual is approved as an executor, administrator, conservator or guardian of the estate through a court order, they attach a copy of the court approval verifying their involvement as an estate, conservatorship or guardianship. [See RPI Form 252 §2.3]
When the verified individual represents the participant as an attorney-in-fact, the Power of Attorney form is attached. [See RPI Form 252 §2.4; See RPI Form 447]
The individual acting on behalf of the transaction participant signs the form and the agent attaches the form as an addendum to the agreement or counteroffer entered into by the transaction participant. [See RPI Form 252]
Form navigation page updated 04-2022.
Form last revised 2015.
Form-of-the-Week: Power of Attorney and Verification of Capacity to Represent Addendum — Forms 447 and 252
Form-of-the-Week: The Verification of Capacity to Represent Addendum — confirmation of an individual’s authority to sign
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