Are electronic signatures legal for real estate contracts?
Yes. The federal ESIGN Act and state laws based on the Uniform Electronic Transactions Act make electronic signatures valid for most real estate contracts, as long as the parties agreed to sign electronically and the signature is linked to the document and the signer.
Some documents, such as certain notices and recorded instruments, have their own rules. Title companies and county recorders may also require specific formats, so ask which they accept.
A good e-signature process records who signed, when, and the final document, and gives each signer their own link.
Common mistakes
- Not keeping a record of who signed and when.
- Assuming the county will accept electronically signed recorded documents.
- Sending one shared link instead of one per signer.
More questions
Can a deed be signed electronically?
Recorded documents such as deeds usually need notarization, and counties differ on accepting electronic recording. Ask the title company.
What makes an e-signature valid?
The parties agree to sign electronically, the signature is attached to the document, and there is a record of who signed and when.
Do both parties have to sign electronically?
No. One party can sign on paper and the other electronically, as long as both signatures end up on the same final agreement.