Sales contracts, addenda and extensions may be accepted with electronic signatures by buyers and brokers when they are in compliance with the required guidelines. The electronic signatures should be authenticated with a number or statement that it was digitally signed along with the date it was signed. An indication of the electronic signature and date should be clearly visible when viewed electronically and in a paper copy of the electronically signed document.
In order to qualify as an electronic signature under the ESIGN Act and UETA, the system used to capture the transaction must keep an associated record that reflects the process by which the signature was created, or generate a textual or graphic statement (which is added to the signed record) proving that it was executed with an electronic signature.
*Often, part of the electronic signature is covering up the purchaser’s name on line 13 of HUD contract. Brokers need to either adjust the size of the electronic signature or move it over to the right or below the buyer’s printed name.