Making Life Easier with Electronic Signatures

Eleven single-family homes and condominiums have sold and closed escrow in the Malibu area (everything in the 90265 ZIP code) so far in August. This is down from 16 in July. Nine were listed as standard sales, one was an REO/bank-owned property and one was a short sale. Seven of the closed sales were for single-family homes and two were for condos. See the attached chart for more details.  

Electronic signatures are slowly gaining momentum in the real estate industry. If you buy or sell property this year, your real estate agent may ask you to sign your contracts electronically. Technology is making it easier for transactions to take place without even leaving your home or office. The two electronic signatures products that I have used are zipLogix Digital Ink and DocuSign.

Local Realtors have access to zipLogix as a benefit to their Malibu Association of Realtors membership. So, more agents will be offering this convenience to their buyers. 

A digital signature is a type of electronic signature. There is a digital code attached or embedded in the electronic document. Not only does it uniquely identify the signer, but it ensures the original content of the document and uses encryption technology to prevent alteration. A digital signature provides a higher level of security than other types of electronic signatures.

The Uniform Electronic Transactions Act (state law) and the Electronic Signatures in Global and National Commerce Act (federal law) state that a document or signature cannot be denied legal effect or enforceability solely because it is in electronic form. Both laws allow electronic signatures to be used in real estate transactions. There are some real estate documents, primarily pertaining to landlord/tenant agreements that are not covered under these laws, so it's important to consult a real estate professional for a list of those exclusions.

I have recently begun using zipLogix, which is helpful when I am working with out-of-area clients. The digital signatures or digital certificates provide greater security and authentication. User authentication is leveraged by e-mail, access (pin) code and third-party identity check. With this new technology, I feel I can better serve my clients with faster service and less paper waste. Also, it provides a better image of me when my clients see that I am using the latest technology. The greatest benefit is that clients don't have to find a fax machine to send documents.

During a recent escrow/sale, I learned that the lenders were not accepting the digital signatures on purchase contracts. The digital process can be used to get through a negotiation with an offer and all counters, but it's important to note that some financial institutions are reluctant to accept electronic signatures for the entire transaction, including the loan. Technology is moving forward and soon these electronic signatures will be standard for all future business transactions.

Beverly Taki is a California-licensed real estate broker who has represented clients in Malibu for 22 years. She is a Malibu resident and president/broker of Seabreeze Estates Realty. Beverly has earned a certificate in dispute resolution from Pepperdine University, specializing in mediation. Taki can be reached at mailto:beverly@beverlytaki.com or 310-456-4843. Her website is beverlytaki.com.