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Must my client sign the receipt?

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Aug 12, 2016

Contract Issues

Question: The packet or certificate was hand-delivered and the agent asked me to sign a receipt for it. I always recommended that my Purchasers not sign the “Purchaser’s Acknowledgement of Receipt […]” (forms K1126 for POA and K1025 for Condo) because it states that the packet or certificate was complete when received and there is not time to review the packet for completeness when delivered. Must my client sign the receipt?

Answer: NVAR published updated versions of these forms which state that when the purchaser signs the receipt, he only agrees that the package received should contain all the statutorily required disclosures. The forms no longer affirmatively state that the packet or certificate is complete.  

As for the obligation to sign the receipt, while the Code places the burden on the sender to prove delivery for a Notice of Cancellation, it does not do so for delivery of the packet or certificate. The statute does not require a signed receipt for the hand-delivery of the packet. The statute requires a receipt only when the packet is delivered by electronic means. Delivery by United States mail is deemed to have occurred within six days after the postmark date.
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