Did you know that you can buy or sell a piece of property without ever putting pen to paper?
Well, at least all the way up to the time when you must sign a mortgage or title document in front of a notary, and provide not only a “wet” signature but also your right thumbprint.
The Uniform Electronics Transactions Act (UETA) and the Electronic Signatures in Global and National Commerce Act (ESIGN) state that a document or signature cannot be denied legal effect or enforceability solely because it is in electronic form.
Both of these state and federal laws allow electronic signaturestobeusedinreal estate transactions. Although are reluctant to accept electronic signatures on loan documents, it has become common practice to allow clients greater accessibility and convenience by signing real estate transaction documents electronically.
An electronic signature is an electronic sound, symbol or process attached or associated with a contract or other document and adopted by a person with the intent to sign. There are different types of electronic signatures, and the most common program used in transactions by Realtors is Docusign.
Docusign allows documents to be sent via email, opened and signed with a click of the mouse.
Signer authentication will vary by program as to how a signer’s identity is veri- still very wary of possible fraud in the use of electronic signatures, and although rare, legal disputes can arise concerning the authenticity of signatures and content within documents.
A major advantage to using electronic signatures over traditional wet ink signatures on paper documents is that software programs can collect “metadata”, information on when and where a document was viewed, signed, and sent.
What not to sign What documents should not be signed electronically? UETA and ESIGN have similar but not identical provisions for excluding certain transactions from their application. These include certain documents pertaining to Landlord and Tenant transactions such as three day and eviction notices, applications to rent, and notices of termination or change in tenancy.
Other documents that should not be signed electronically include wills, codicils, or testamentary trusts; mortgage loan disclosure statements; notices regarding balloon payments and foreclosure notices; and cancellation of homeowners insurance.
Many free apps are available for personal use of electronic signatures.
Check out Gmail’s new plugin Hellosign, or Sign- Now, PDFescape, Adobe reader, and Preview on Mac. All of these free applications may save you a trip to Kinko’s or waiting until return an important document that needs your John Hancock—or at least a digital image of it.
Adriana Donofrio Podley Properties Glendora 626 914-2904 adrianad@podley.com
