Systems – Dotloop

Lesson 3: Dotloop — Transaction File Management

Dotloop as System of Record

Dotloop is the centralized system of record for all transaction files and documents at Scofield Group LLC. Every transaction from contract through closing must be organized and maintained in Dotloop. This ensures proper documentation, legal compliance, and audit readiness.

Why Dotloop Matters:

• Single source of truth for transaction documents and execution status
• Signature tracking and electronic document execution
• Version control and document organization
• Audit trail of all modifications and approvals
• Legal defensibility in disputes or regulatory reviews
• Compliance with state and federal documentation requirements

Compliant File Requirements

A transaction file in Dotloop is considered compliant when it contains all required documentation, signatures, and has been properly organized for legal defensibility.

Core Compliance Requirements:

• All Required Documents: Varies by transaction type (purchase agreement, addenda, disclosures, etc.)
• Required Signatures: All parties have executed (signed) all necessary documents
• Audit Trail Intact: Signature dates, execution locations, and modification history preserved
• Organized Structure: Documents logically grouped and labeled
• Ready for Audit: File could withstand broker review or regulatory inspection without gaps

Document Upload Standards

When uploading documents to Dotloop, always upload the executed (signed) version—never unsigned drafts or preliminary versions.

Document Upload Requirements:

• Only Signed Documents: Upload fully executed documents with all required signatures
• Final Versions: Do not upload unsigned drafts, preliminary versions, or work-in-progress documents
• Correct Document Type: Label documents accurately so they can be located and reviewed
• Signature Verification: Confirm all required parties have signed before uploading
• Date Accuracy: Ensure document dates and signature dates are correct
• Legibility: Documents must be clearly readable (proper scanning, not blurry photos)

Examples of Documents to Upload:

• Executed purchase agreement and all addenda
• Signed counteroffers or amendments
• Executed disclosure documents
• Inspection reports and repair agreements
• Appraisal documents and conditions
• Final closing disclosure and settlement statement
• Signed deed and title documents

Signed Document Modification Policy

Once a document is signed by all parties, it becomes a legal record. Modifications must follow proper procedures to maintain legal defensibility.

Document Modification Rules:

• Never Alter Signed Documents: Do not edit, redact, or modify signed documents directly
• Use Amendments or Counters: If changes are needed, create a formal amendment or counter-offer
• Execute New Signatures: All parties must sign any amendment or modification document
• Maintain Version History: Keep original documents with all amendments in the file
• Document Reason: Note in Dotloop why modifications were necessary
• Broker Approval: Serious modifications may require broker review or approval

Version Control and Organization

Proper version control and document organization are essential for legal defensibility and audit compliance.

Version Control Best Practices:

• Sequential Naming: Use consistent naming (e.g., “Purchase Agreement v1”, “Addendum A v2”) to track versions
• Keep All Versions: Retain all iterations, including unsigned drafts, for audit trail completeness
• Date Documents: Ensure documents show creation and signature dates
• Logical Grouping: Organize documents by phase (contract, inspection, closing, etc.)
• Clear Labeling: Use descriptive names so anyone can locate specific documents quickly
• Signature Status: Clearly mark documents as drafted, pending signature, or executed

Transaction Type-Specific Documentation

Different transaction types require different documentation. Ensure your file includes all required documents for the specific transaction type.

Documents by Transaction Type:

• Buyer Transactions: Purchase agreement, disclosures, inspection report, appraisal, financing docs, closing disclosure
• Seller Transactions: Listing agreement, disclosures, CMA, approval documentation, closing statement
• Lease Transactions: Lease agreement, tenant screening, move-in inspection, compliance docs
• Listing/Showing Agreements: Signed agency forms, showing instructions, MLS authorization
• Short Sale/Bank Approval: Bank approval letter, loss mitigation documents, approval timeline

Audit Trail and Legal Defensibility

Dotloop maintains an audit trail of all document uploads, signature dates, and modifications. This audit trail is critical for legal defensibility.

What Audit Trail Shows:

• When documents were uploaded and by whom
• When documents were signed and by which parties
• Any modifications or amendments to documents
• Access history to the transaction file
• Version history of all documents

Protecting the Audit Trail:

• Do not delete documents or files (if needed, archive instead)
• Do not manipulate document metadata or timestamps
• Do not retroactively change document dates or signatures
• Always use formal amendment procedures for changes
• If audit trail is compromised, notify broker immediately

Onboarding Specifics: Dotloop Training Resources

Complete all three training materials:

• Create a Loop — Video walkthrough on creating and sending a loop
• Dotloop Walkthrough PDF — Step-by-step written reference guide
• Broker Training Video — How to properly share loops to the broker for review

Goal: Be able to independently create and send a contract package.

For buyer transactions: Always use the Scofield Group Buyer Template.