diff --git a/teressa-copeland-homes/src/lib/ai/extract-text.ts b/teressa-copeland-homes/src/lib/ai/extract-text.ts
index 6d94eb8..bb2e225 100644
--- a/teressa-copeland-homes/src/lib/ai/extract-text.ts
+++ b/teressa-copeland-homes/src/lib/ai/extract-text.ts
@@ -12,11 +12,19 @@ import { join } from 'node:path';
 // Empty string is falsy → PDFWorker.workerSrc getter throws before the import runs.
 GlobalWorkerOptions.workerSrc = `file://${join(process.cwd(), 'node_modules/pdfjs-dist/legacy/build/pdf.worker.mjs')}`;
 
+/** A single line of text, grouped by approximate Y position. */
+export interface TextLine {
+  yPct: number;    // % from page TOP (0 = top, 100 = bottom)
+  xPct: number;    // % from page LEFT of the first item on this line
+  text: string;    // all items on this line joined
+}
+
+/** Per-page structured data for AI consumption. */
 export interface PageText {
   page: number;    // 1-indexed
-  text: string;    // all text items joined with spaces, capped at 2000 chars
-  width: number;   // page width in PDF points (72 DPI)
-  height: number;  // page height in PDF points (72 DPI)
+  width: number;   // page width in PDF points
+  height: number;  // page height in PDF points
+  lines: TextLine[];  // text grouped into lines, sorted top-to-bottom
 }
 
 export async function extractPdfText(filePath: string): Promise<PageText[]> {
@@ -28,18 +36,50 @@ export async function extractPdfText(filePath: string): Promise<PageText[]> {
     const page = await pdf.getPage(pageNum);
     const viewport = page.getViewport({ scale: 1.0 });
     const textContent = await page.getTextContent();
-    const rawText = textContent.items
-      .filter((item: unknown) => typeof item === 'object' && item !== null && 'str' in item)
-      .map((item: unknown) => (item as { str: string }).str)
-      .join(' ');
-    // Cap text per page at 2000 chars to stay within GPT-4o-mini context limits
-    const text = rawText.slice(0, 2000);
-    pages.push({
-      page: pageNum,
-      width: viewport.width,
-      height: viewport.height,
-      text,
-    });
+
+    const W = viewport.width;
+    const H = viewport.height;
+
+    // Collect raw items with positions
+    const rawItems: { text: string; x: number; yFromTop: number }[] = [];
+    for (const item of textContent.items) {
+      if (typeof item !== 'object' || item === null || !('str' in item)) continue;
+      const i = item as { str: string; transform: number[] };
+      if (!i.str.trim()) continue;
+      const x = i.transform[4];
+      const yFromTop = H - i.transform[5];  // PDF y is from bottom; flip to screen coords
+      rawItems.push({ text: i.str, x, yFromTop });
+    }
+
+    // Group items into lines by rounding yFromTop to nearest 4pt bucket
+    const lineMap = new Map<number, { items: typeof rawItems; minX: number }>();
+    for (const item of rawItems) {
+      const bucket = Math.round(item.yFromTop / 4) * 4;
+      const existing = lineMap.get(bucket);
+      if (existing) {
+        existing.items.push(item);
+        existing.minX = Math.min(existing.minX, item.x);
+      } else {
+        lineMap.set(bucket, { items: [item], minX: item.x });
+      }
+    }
+
+    // Sort lines top-to-bottom, join items left-to-right
+    const lines: TextLine[] = Array.from(lineMap.entries())
+      .sort(([a], [b]) => a - b)
+      .map(([yBucket, { items, minX }]) => {
+        const sorted = items.sort((a, b) => a.x - b.x);
+        return {
+          yPct: Math.round((yBucket / H) * 1000) / 10,  // 1 decimal place
+          xPct: Math.round((minX / W) * 1000) / 10,
+          text: sorted.map((i) => i.text).join(' '),
+        };
+      })
+      // Cap at 120 lines per page to stay within context limits
+      .slice(0, 120);
+
+    pages.push({ page: pageNum, width: W, height: H, lines });
   }
+
   return pages;
 }
diff --git a/teressa-copeland-homes/src/lib/ai/field-placement.ts b/teressa-copeland-homes/src/lib/ai/field-placement.ts
index b9dc808..729a97f 100644
--- a/teressa-copeland-homes/src/lib/ai/field-placement.ts
+++ b/teressa-copeland-homes/src/lib/ai/field-placement.ts
@@ -99,28 +99,47 @@ export async function classifyFieldsWithAI(
   const clientName = client?.name ?? 'Unknown';
   const propertyAddress = client?.propertyAddress ?? 'Unknown';
 
-  // Build pages summary — text already capped at 2000 chars per page in extractPdfText
-  const pagesSummary = pageTexts
-    .map((p) => `Page ${p.page} (${p.width}x${p.height}pt):\n${p.text}`)
-    .join('\n\n');
+  // Build structured page summary — each line includes yPct/xPct so the AI has spatial context
+  const pagesSummary = pageTexts.map((p) => {
+    const linesSummary = p.lines
+      .map((l) => `  y=${l.yPct}% x=${l.xPct}%: ${l.text}`)
+      .join('\n');
+    return `=== Page ${p.page} (${p.width}x${p.height}pt) ===\n${linesSummary}`;
+  }).join('\n\n');
 
   const response = await openai.chat.completions.create({
     model: 'gpt-4o',
     messages: [
       {
         role: 'system',
-        content: `You are a real estate document form field extractor.
-Given extracted text from a PDF page (with context about page number and dimensions),
-identify where signature, initials, text, and date fields should be placed.
-Return fields as percentage positions (0-100) from the TOP-LEFT of the page.
-Use these field types: text (for typed values), initials, date, client-signature, agent-signature, agent-initials.
-Only place fields where the document clearly requires them — prefer fewer, high-confidence placements.
-For text fields that match the client name or property address, set prefillValue to the known value. Otherwise use empty string.
-Do NOT place checkbox fields.`,
+        content: `You are a real estate document form field extractor. You receive structured text from PDF pages where each line includes its Y position (% from top) and X position (% from left).
+
+Your job: identify every location that requires a FIELD to be filled in.
+
+FIELD PLACEMENT RULES:
+1. Only place fields at actual form field locations — blank lines (___), labeled input areas, signature blocks, date lines, and initials boxes.
+2. NEVER place fields inside paragraph body text, headings, or descriptive content.
+3. Look for these patterns as indicators of form fields:
+   - Lines of underscores: "_______" or "___________"
+   - Labels followed by blank space: "Date: ___", "Name: ___", "Address: ___"
+   - Signature lines labeled: "(Seller's Signature)", "(Buyer's Signature)", "(Agent Signature)", "Seller", "Buyer"
+   - Initials indicators: "Initials", "[ ]", "(Initials)", "_________ Initials"
+   - Date lines: "(Date)", "Date ___", "___ / ___ / ___"
+4. For EVERY such blank or label you find, add a field — even if you have nothing to prefill. Leave prefillValue as "" if you don't know the value.
+5. Match field types:
+   - "client-signature" → buyer/client signature lines
+   - "agent-signature" → agent/listing agent signature lines
+   - "initials" → initials boxes or short initial blanks
+   - "agent-initials" → agent-specific initials
+   - "date" → date fields
+   - "text" → any other fill-in-the-blank (names, addresses, prices, etc.)
+6. Place the field AT the blank/label's yPct. Use the xPct from that line for xPct.
+7. Do NOT place checkbox fields.
+8. For text fields where the value matches the client name or property address, set prefillValue. Otherwise use "".`,
       },
       {
         role: 'user',
-        content: `Client name: ${clientName}\nProperty address: ${propertyAddress}\n\nPDF pages:\n${pagesSummary}`,
+        content: `Client name: ${clientName}\nProperty address: ${propertyAddress}\n\nDocument pages (each line shows position and text):\n\n${pagesSummary}`,
       },
     ],
     response_format: {