This trend has been made possible by the law. Many states, including New England, have laws that allow electronic documents, contracts, and other records to be valid, legal, valid, or enforceable.
Additional legal steps were taken during COVID-19 to permit remote notarization of download documents.
E-signatures in Real Estate Transactions
Digital signature software means have been used by courts to enforce real estate industry contracts. In one Massachusetts case, for example, the seller and buyer of the real estate agent agreed that they would communicate via email.
They then settled on a purchase price as well as other terms through an email exchange. Every email exchange ended with the name of the sender. The seller tried to renege on the contract and was sued. The Court ruled that the seller's typed name at the end of the email was a signature.
However, there are still concerns about electronic signature solutions despite their many benefits and widespread acceptance.
To give legal effect to an electronically signed document, several requirements must be met. Both parties must sign electronically and agree to digital signature software. They also need to be able to retain the electronic form record.
You can use a touch screen or mouse to sign electronically or click a button. It is a matter of fact that a signature will be effective or not, depending on the circumstances.
Noting that legal weight validity, court admissibility, and enforceability are distinct concepts with their own requirements, it is important to remember.
To challenge the validity of electronic signature solutions, legal challenges can be brought on the same grounds as traditional documents. These include forgery and fraud.
Additionally, cyberattacks can also be used to compromise electronic signature software. It is important to reduce cybercriminals and hackers' exposure and manage risk.
This could include virus protection or other systems that enhance cybersecurity and protect sensitive data.
The risk of misinterpretation increases when digital documents can be viewed and signed on mobile devices, computers, or other handheld devices.
Although this may sound simple, it can make it more difficult to read a document on a small screen than to read it in person. It can also prevent you from fully understanding the terms. Combining this with the ease of clicking a mouse to create a document can lead to disputes between the parties in a transaction regarding its effectiveness.
This risk can be reduced by having the parties acknowledge receipt of a full copy of the real estate document (either PDF or hardcopy) before distribution for electronic signature.
Conclusion
Although cell phones and mouse clicks have replaced pen and paper in real estate electronic signatures should be treated with the same care and importance as ink signature types.
There are important documents such as deeds and wills, trusts, and powers of attorney, where an older-fashioned "wet-ink" signature is still required. It is highly recommended that legal counsel review any legal document before it is signed.
