What is an electronic signature, and is it legal?

What is an electronic signature, and is it legal?

An electronic signature, or e-signature, is defined as “referring to data in electronic form, which is logically associated with other data in electronic form and which is used by the signatory to sign”. This type of signature provides the same legal standing as a handwritten signature as long as it adheres to the requirements of the specific regulation it was created under.

In today’s world, contracts move at a much faster pace than they did five years ago. When I started in this business most contracts were sent and received by FAX… something that is considered nearly a dinosaur today. I can’t even tell you the last time I received a faxed contract. As the use of home computers and handheld electronic devices has exploded over the last ten years so have the ways we negotiate, sign contracts, addendum’s and disclosures; thus making it easier for everyone involved.

Anyone who has access to a computer can sign forms electronically. I have even had a whole home sale go through completely with the use of electronic signature. I never did meet the woman buying the house until the day of closing. She was a woman in her late sixties and just got her first iPad a month earlier. I was able to walk her through the whole process, and she laughed on how easy it was, tickled that she didn’t have to print out twenty-seven pages of documents.

Is it legal?

Yes, it is legal. In the state of Louisiana the buyer and seller must each sign a document verifying that the email addresses being used are the correct ones. This signature is the only one that is required to be a “wet” signature (done by hand). This insures that all parties are agreeing to the use of electronic signature and that the correct email addresses are receiving the documents that require a signature.
How does it work?

For the person receiving the documents that need signing, the process is extremely simple. You will receive an email requesting your signature on the document that requests you to click a link. The link will direct you to a secure website. You will then be asked how you would like your signature to look by either signing with your finger or mouse pointer. Once you’ve accepted the look of your signature you’ll be asked to follow the prompts to where your signature is needed. If you miss a spot, the site usually lets you know the areas you have missed. Once completed, you will be asked to push a “complete or accepted” button. This means you have completed the process, and a copy of the documents you just signed will be sent to the email address that was used for signing.

****If you are unsure of what you are signing please contact the person who is sending you the documents. Never sign anything you do not understand.*****

Don’t be afraid of using electronic signatures. They are safe, legal and extremely simple and self-explanatory to use. If you don’t feel comfortable with the idea just know that even the federal government uses them. Have you ever filed your taxes at places like H&R Block? They have been using electronic signatures for years. You have been signing via electronic signature, and didn’t even know it. The system I use for electronic signature is set up through the Greater Baton Rouge MLS, called Authentisign, and has been up and running for about a year. So far, I’ve used electronic signatures for about 5 years now. It saves a ton of time for the buyers and sellers when dealing with a home sale transaction. People are so busy, and this makes thing simpler for you, the clients. Why? “Because YOU matter”

#yourrealestatewhisperer