A Guide to Real Estate Electronic Document Signing
The procedure of signing an offer has typically been one that is slow and difficult to complete. The process of getting an accepted offer signed can easily take up a lot of time because of the need to use a wet signing page and the requirement to type the contract back and forth.
The use of electronic signatures makes the entire process considerably easier, quicker, and more secure, especially when it comes to the closing of a mortgage.
The process of purchasing and selling homes is being revolutionized by the use of electronic document signature. Over the course of the past few years, a significant number of real estate professionals and platforms have grown to rely on electronic signature systems, such as Wesignature, to make the process easier to complete.
But how exactly does everything function? What advantages does it have over the traditional signature made with ink? Is it acknowledged in a court of law? In this section, we cover some of the most often asked topics pertaining to electronic signatures for the real estate industry.
What is an Electronic Signature and What are Its Benefits?
For a very long time, signatures have been the go-to method for concluding transactions in the real estate market. A physical signature is typically necessary for the completion of a real estate transaction, whether it is for the signing of a contract or other closing paperwork.
It is now possible to conduct all aspects of a real estate transaction online thanks to the development of eSignature technology, often known as electronic document signing. The electronic signature, also known as an eSignature, is the digital version of signing one’s name in ink on paper, and it has a number of benefits that traditional signatures do not.
For starters, electronic signatures are more handy than traditional ones because they can be completed from any location in the world.
Electronic signatures offer an additional layer of protection since they generate a log that shows when and where a document was signed.
Last but not least, electronic signatures save time and money by doing away with the need to physically mail or fax papers back and forth. Because of all of these factors, the use of electronic signatures is becoming more widespread in the real estate sector.
How does Electronic Signing Work?
Under the umbrella of the electronic signature, there are a few different choices, including the following:
- Putting your name and other identifying information, such as your identification number, into a document and typing them out to sign it.
- Putting your real signature on a digital document and signing it with a stylus or by touching a touchscreen with your finger is called digital signing.
- Signing with credentials, which may include biometrics, password entry, or encryption, and coordinating with a Trust Service Provider that has been confirmed (TSP).
When dealing with items like contracts, which may contain compliance difficulties, it is recommended that firms use the very last choice.
Are Electronic Signatures Legally Binding?
The Electronic Signatures in Global and National Commerce Act (also known as the E-Sign Act) was passed into law on June 30, 2000, with the intention of assisting in the implementation of the acceptance of electronic signatures as legally binding. in addition to the Uniform Electronic Transactions Act (UETA), which is now law in 47 states after being passed by the federal government.
The National Association of REALTORS, which represents real estate professionals, voiced its support for the “E-Sign Act of 2000,” a piece of legislation that recognizes electronic signatures as legally equivalent to handwritten signatures.
This would reduce the amount of paperwork required and speed up real estate transactions while preserving the integrity of the judicial system.
Some Closing Thoughts
As an increasing number of real estate brokers and vendors make the switch to electronic signatures in order to streamline the process, the trend toward electronic signatures is not likely to abate in the near future.
Whether you are a homebuyer preparing to spend additional time in the closing room or a real estate broker using DocuSign as a tool in your day-to-day home buyer document preparation, now is a good time to know what e-signatures imply for the future of real estate transactions.