Electronic signatures have increasingly become common in today’s digital age, quickly replacing traditional handwritten signatures. They offer convenience and efficiency, speed up the transaction process and reduce the need for physical paperwork and storage. That said, there are challenges associated with electronic signatures, such as potential legal disputes over their authenticity.
In Arizona, like in most other states, electronic signatures in real estate transactions are legally valid and enforceable under the Electronic Signatures in Global and National Commerce Act (E-SIGN) and the Uniform Electronic Transactions Act (UETA). However, certain conditions must be present to ensure enforceability.
Requirements for enforceability
First, the signing party must show they intended to sign the documents electronically, and both parties must consent using electronic means to complete the transaction. It means having an opt-out for signers who choose to do things manually. The electronic signature must also be logically tied to or associated with the document to ensure that the person signing understands that it applies to the specific document or transaction.
Further, either party must be capable of retaining and accurately producing the electronic document and signature for later reference. This ensures that both parties can access and review the signed documents, providing a verifiable record of the transaction.
Avoid costly mistakes
Real estate transactions are among those most likely to have electronic signatures. In such instances, you do not want to do anything that can compromise the integrity of crucial documents or render contracts invalid or unenforceable. It could expose you to costly legal or financial liability.
Reaching out for experienced guidance can help you effectively navigate the complexities of electronic signatures and other intricacies of real estate transactions to help ensure legal compliance and protect your interests.
