The real estate industry has now become one of the many beneficiaries of ESignature technology.
ESignature solutions for real estate cater for a wide range of needs in that sector. This includes contracts for sale, hiring agreements for real estate agents, contracts indicating how the commission is earned, and so on. The best signature solutions for these companies should be able to provide enough security as well as ease of doing business. Efficient systems will make it very easy for agents to do their jobs without experiencing undue delays while working. In addition, the real estate company will not experience cases of a data breach, which could result in serious legal consequences and loss of business.
There are two main types of online signatures that can be used in the real estate industry, namely e-signatures, and digital signatures. Often, the names are used interchangeably to mean any form of execution used with digital documents. Even so, the two terms refer to different signatures. E-signatures are online versions of a person's physical signature. They can be created in two main ways.
- First, one can scan a copy of their physical signature and place the scanned image on an online document before sending. This can only be done if the document can be edited. The second type is an advanced e-signature which is made on a screen instead of a piece of paper. E-signatures are easy to create, and often easy to forge if a person has the right credentials. Ideally, they should only be used to allow the recipient to easily identify sender of the document, not for verification.
- The second type of signature is a digital signature. This is a more sophisticated version, and is created using cryptography. This implies that the codes used are hidden, forming an extra layer of security. The cryptography depends on blockchain technology. Such systems are peer-controlled, giving every single server or user equal access to the system. This means that no one can interfere with other users. Also, digital signatures can only be opened by recipient, without tampering with the contents of the document. This gives a recipient more assurance that their documents have not been interfered with before delivery. This type of security is made possible by the fact that digital signatures, just like all links in a blockchain system, are singular in nature. They can only be used once for each transaction. Again, this enhances secure use and makes it easy to trace all transactions according to how they were carried out. ESignature real estate company software will be used in the following areas.
Below are some of the considerations to take when getting the right eSign solutions;
1. The Legalities
When looking to enforce an agreement or a contract within a court setting, the court tends to look at whether both parties intended to be bound by the contents of their agreement. Digital signatures are very particular because they can only be used by one sender and one recipient. The sender will have a digital ID that sets them apart from others, meaning that every document can be traced back to its owner. This makes legal enforcement easy because no party can deny that they were part of the agreement.
2. The Audits
Digital signatures tend to leave a trail whenever they are used on online documents. This means that the sender and the recipient of a document can easily be traced if the need arises. In a real estate company, this helps in keeping track of all sales, and making sure that they were completed in a legal way. In case of an audit, it will be easy for the auditor to follow all transactions by looking at the digital signatures that were used. This enhances accountability within the field.
3. The Contracts for sale
This would possibly be the one department in real estate that uses digital signatures the most. Before digital contracts became widely used, sales would be completed by signing physical contracts which would then be kept at the firm. In an industry that is now moving to online platforms, it is no longer feasible to keep signing physical documents. This is where online signatures come in. Using an electronic device, the contract can be prepared, signed and sent to the client in a faster and more effective way.
4. The Insurance agreements
Buying a house also involves buying the right home insurance. This protects the homeowner from suffering any losses in case of accidental damage to the property. It also ensures that they have a plan to fall back on, in case this happens. Some real estate companies partner with major insurance providers to cover all of their houses. These agreements can always be completed digitally and signed using e-signatures. Sometimes, the buyer might choose to get their own insurance. Here, the real estate agent should come in and help in the signing of that agreement. Again, it would be much more convenient to use online signatures as opposed to exchanging physical documents.
5. The Employment
A software creating eSignature for real estate companies would also be very useful in the human resource department. Many of these companies pay their agents salaries, as well as commissions depending on the sales they make. The signatures can be used to sign employee contracts once the ageng starts working at the company. The more secure digital signatures should be used, instead of e-signatures. This way, the parties to the contract will be obligated to keep their side of the agreement. Any breach of contract would easily be settled in a court of law.
ESignatures for real estate agents cover multiple uses. Examples include insurance, banking, and legalities. The type of online signature used should correspond to the purpose of the document to be sent. For everyday transactions that do not bear any serious legal consequences, a simple e-signature will suffice. If the transaction involves more important data that needs to be secure, then the real estate agent or the company should use digital signatures which are more secure and verifiable. Using online signatures in real estate also means that a company is able to trace all the transactions conducted by its agents and employees. The software also serves as a way to ensure that a client holds up their end of the bargain without attempting any illegal activities.