In real estate, access is everything.

You can’t market a property, arrange showings, or line up contractors without a seller’s permission. But sometimes a standard listing agreement or purchase contract doesn’t give you the flexibility you need.

Maybe you’re negotiating a creative finance deal, testing the waters with potential buyers, or exploring a novation strategy. In these cases, a third-party agreement is the tool that gives you legitimate access and authority without crossing legal or ethical lines.

A third-party agreement isn’t just paperwork. It’s the seller saying, “I trust you enough to let you represent this property with limits we both understand.”

Used correctly, it protects the seller, clarifies your role, and sets the stage for everything from marketing to negotiations. Used poorly, it confuses homeowners and creates liability.

This guide breaks down exactly how to use third-party agreements, what must be included, and how to present them so sellers feel safe signing.

What A Third-Party Agreement Does

At its core, a third-party agreement gives an investor or agent permission to interact with outside parties on behalf of the seller. It doesn’t transfer ownership, and it doesn’t force the seller to close. It simply authorizes specific actions.

Typical uses include:

• Allowing you to market the property to potential buyers

• Granting you permission to communicate with contractors, inspectors, or lenders

• Providing written proof to title companies or attorneys that you’re involved legitimately

• Giving you authority to handle showings, lockboxes, or access arrangements

Without this agreement, your involvement can look like interference. With it, you’re covered.

When To Use A Third-Party Agreement

Not every deal requires one, but here are common situations where it’s smart to secure seller permission through a third-party agreement:

• Creative Finance Deals
  When you’re structuring subject-to, seller financing, or novation, you’ll often need authority to contact the lender, market the home, or talk with third-party buyers before you own the property.

• Joint Ventures
  If you’re partnering with another investor, the seller may want clarity about who’s authorized to represent the deal.

• Early Marketing Before Closing
  Sometimes you’ll want to test buyer demand before you technically control the property. A third-party agreement protects you here.

• Property Prep And Repairs
  If contractors need access before closing, you’ll need written permission.

• Dealing With Title Or Liens
  Sellers sometimes ask you to work directly with the title company to clear issues. A third-party agreement makes that communication official.

Key Elements Every Third-Party Agreement Should Include

To be effective, a third-party agreement has to be crystal clear. Here’s what belongs in every document:

• Identification of Parties: Full legal names and addresses of the seller and the authorized third party (you).

• Scope of Authority: Exactly what you are permitted to do: market the property, show it, contact lenders, arrange repairs, etc.

• Limitations: Actions you cannot take without further approval, like transferring title or binding the seller to a final sale.

• Duration: How long the agreement lasts (30 days, 90 days, or until closing).

• Revocation Rights: The seller’s ability to revoke the agreement in writing at any time before closing.

• Disclosure of Compensation: A clear statement of how you’ll be paid if the deal closes.

• Acknowledgment of Non-Ownership: A reminder that the seller still owns the property until closing.

• Signatures and Dates: Execution makes it enforceable.

If any of these are missing, you risk confusion or disputes later.

What Must Be Disclosed To The Seller

Transparency is the foundation of permission. Sellers need to know:

• You do not own the property and cannot transfer it on your own

• Your role is limited to the actions spelled out in the agreement

• You may earn compensation if the transaction closes, and how that works

• They retain full ownership rights until closing

• They can revoke your authority if they no longer wish to proceed

Disclosing these items upfront prevents the seller from feeling tricked or pressured later.

How To Present The Agreement To Sellers

The way you frame a third-party agreement makes all the difference. Here’s a conversational script that works:

• “This document doesn’t sell your home. It just gives me permission to [show it / market it / speak with your lender] so I can move things forward.”

• “You’re still the owner until closing. Nothing changes that.”

• “If you decide you don’t want me involved anymore, you can revoke this in writing.”

• “I’ll be compensated only if the transaction closes, and that’s spelled out here.”

By using simple, plain English, you help the seller feel in control. That trust makes them more likely to sign.

Common Mistakes To Avoid

Third-party agreements are simple, but professionals still trip up. Here are the most common errors:

• Overreaching Scope
  Trying to grant yourself rights that belong only to the seller or a licensed broker.

• Failing To Disclose Compensation
  Hiding your profit erodes trust.

• Skipping Duration And Revocation Clauses
  Sellers need to know the agreement isn’t forever.

• Using Vague Language
  “General authority” isn’t good enough. Spell out actions specifically.

• Not Involving An Attorney
  Even a short agreement should be reviewed for compliance.

How Third-Party Agreements Fit With Creative Strategies

For investors, third-party agreements unlock flexibility. For example:

• In a novation deal, you need permission to market the property to retail buyers before you own it. The agreement makes that legal.

• In a subject-to transaction, you might need to speak directly with the lender or insurance company. A third-party agreement lets you.

• In a joint venture, two investors might split responsibilities. Having a signed agreement keeps the seller clear on who does what.

Without this step, you risk operating in a gray area. With it, you stay compliant and professional.

How To Spot Opportunities For Third-Party Agreements

Not every seller will need or want one, but here’s how to identify situations where asking makes sense:

• They hesitate about giving you full control through a purchase contract

• The property has liens or title issues that you could help resolve

• They’re open to creative strategies but unsure about the mechanics

• They want you to test-market the property without locking into a listing agreement

The key is listening. If you hear hesitation, a third-party agreement can bridge the trust gap.

Using Tools To Manage And Track Agreements

Keeping track of agreements, expirations, and seller communications can get messy fast. That’s why many professionals use real estate prospecting tools. Tools like Goliath Data don’t just help find motivated seller leads.

They also help keep contracts, reminders, and follow-up tasks organized so nothing slips through the cracks. When you’re juggling multiple creative deals, that kind of structure is essential.

Why Securing Permission Protects You And The Seller

Real estate deals fall apart when misunderstandings pile up. A third-party agreement keeps you and the seller aligned. They know what you can and can’t do.

You know you have written permission to act. And when the lender, title company, or another buyer asks, you can show a signed document instead of relying on a handshake.

That’s professionalism. And it’s what separates real dealmakers from amateurs.

Action Steps To Implement This Week

Here’s how to put this into practice right away:

• Draft a simple third-party agreement template with your attorney

• Highlight the scope, duration, compensation, and revocation clauses

• Create a one-page FAQ explaining to sellers what the agreement does

• Identify two leads where a third-party agreement could move things forward

• Practice your disclosure script so you can present it confidently

Small steps now save you headaches later.

The Bottom Line

Third-party agreements aren’t complicated, but they’re powerful. They give you seller permission to act without overstepping. They protect homeowners from surprises, protect you from liability, and make creative deals possible.

When you use them consistently and disclose everything upfront, you close more deals with less friction. And when you combine the right agreements with the right data, you’re unstoppable.

Agents using Goliath say it feels like having a team behind them. Want to move faster? Try it today.