What is an e-Signature?

An electronic signature is any legally recognized electronic means that indicates that a person adopts and agrees to the contents of an electronic message or electronic contract. An electronic signature is "an electronic sound, symbol, or process, attached to or logically associated with a contract or other record and executed or adopted by a person with the intent to sign the record."

With Real Estate Dashboard® and eSignOnline® you Now have the best of both worlds – biometric signatures inside Real Estate Dashboard® when you are face to face with your clients and digital signatures via the web (click to sign) when you can’t meet your clients.

A biometric signature is an authentication method that uses the dynamics of a person’s handwritten signature to measure and analyze the physical activity of the stroke order, the pressure applied and the duration of the singing process recorded as an algorithm that can be compared against future signatures.

Biometric signatures are captured using Real Estate Dashboard®, where you use a stylus (pen) to capture signatures – you actually write on the screen of the tablet PC. Capturing an electronic signature on the RED Tablet is just like capturing a handwritten signature on paper.

Here are the advantages to the biometric method:

• Mimics pen and paper experience
• Greater level of consumer comfort
• Repudiation not an issue
• Security and Compliancy with Electronic Signature Law
• Send completed signed document as a PDF via email or fax

A digital signature is a mathematical scheme for demonstrating the authenticity of a digital message or document. A valid digital signature gives a recipient reason to believe that the message was created by a known sender, and that it was not altered in transit. Digital signatures are used with eSignOnline® via the web (click to sign) to capture signatures of clients who are across town, out of town, out of state, out of the country, or just simply anywhere!

Digital signatures help to establish the following assurances:

Intent: Intent is an important aspect of the e-signature process because it provides the legal "context" for enforceability. The digital signature process should always provide a "structured online setting" that takes the signer through a series of steps, which make it clear that they are signing a legal document and confirms intent through overt actions, such as creating their signature and applying it to specific locations in the document.

Authenticity: The digital signature helps to assure that the signer is who he or she claims to be.

Integrity: The digital signature helps to assure that the content has not been changed or tampered with since it was digitally signed.

Non-repudiation: The digital signature helps to prove to all parties the origin of the signed content. "Repudiation" refers to the act of a signer's denying any association with the signed content.

Here are the advantages to the digital (click to sign) signatures:

• Complete signing session from any computer
• Capture secure signatures from parties anywhere
• Security and Compliancy with Electronic Signature Law
• Easy wizard format, just follow the steps

Legality

In year 2000, the federal government enacted the Electronic Signatures in the Global and National Commerce Act (commonly referred to as the "E-Sign Act"). The E-Sign Act created a universal standard for contracts, signatures and records created by electronic means. The most important aspect of the E-Sign Act is that "a signature, contract, or other record relating to such transaction may not be denied legal effect, validity, or enforceability solely because it is in electronic format." In other words, electronic signatures and contracts are legally enforceable.

Electronic contracting is, fundamentally, contracting and contract law. Any contract, electronic or not, requires:

• "Offer," "Acceptance", and
• "Consideration" – some promised exchange of value
• "No defenses" - A contract, electronic or not, will not be enforced if a successful defense can be raised: for example, if an element of the contract is "unconscionable" (violates public policy), if one of the contracting parties was too young to create a contract, etc. What is NOT allowed to be signed with digital signatures (eSignOnline®)? ESIGN and UETA define several contracts that are not covered by the legislation. This is not to say they are invalid as electronic transactions, they are simply not part of the ESIGN legislation. This list includes:
  • Wills, codicils or testamentary trusts
  • UCC transactions (other than Article 2 and Article 2A transactions) generally are excluded, in the UETA (and NCUETA as per N.C.G.S. section 66-313(b)(2)), but in appropriate instances the UCC already provides or will provide for electronic treatment.
  • Any notice of cancellation or termination of utility service or to any notice of default, acceleration, repossession, foreclosure or eviction (or the Right to Cure) under a credit agreement secured by or a lease of a "private residence for an individual".