Electronic Signatures For Real Estate

As I have stated in prior posts, most of us are keenly aware that technology continues to have an impact on our daily lives and nowhere has this perhaps been more evident than with real estate.  MLS® catalogs ceased to exist several years ago replaced by Internet based MLS® systems allowing for the display of more information, multiple photos of a property, virtual tours and so on.

  On the transaction front, real estate forms in Ontario and elsewhere have been converted from legal sized documents to an 8-1/2" X 11" format thus allowing for easier transmission between parties first by fax and now more commonly via email.  The sale of desk top computers have fallen prey to notebooks or laptops and they too are loosing ground to tablets such as iPads and in some cases smartphones get the job done. To further the use of technology in daily business, some time ago the Province of Ontario created the Electronic Commerce Act, 2000 (ECA).  The ECA was created to facilitate the exchange of electronic information  and sets out the rules for conducting business electronically. 

  In the Southern Georgian Bay region, we interact with a significant number of Buyers and Sellers that do not reside here.  Real estate transactions and the flow of paperwork is largely via email.  The one aspect of electronic commerce that has held back the practice of buying and selling real estate has been the use of electronic signatures.  Due to concerns as to whether electronically executed agreement are enforceable, the Provincial Government has been slow in reacting to and passing legislation that would fully allow electronic signatures to be used in real estate.  As of this posting, Listing Agreements can be signed executed with electronic signatures but not Agreements of Purchase and Sale but that is about to change.

  News has just been released that effective July 1st, electronic signatures will now be permissible for the execution of all real estate related documents including Agreements of Purchase and Sale. This is welcome news for many of us that use technology to effectively and efficiently serve our clients.  The change will now facilitate greater use of tablets and other mobile computing devices such as iPads etc.  It also dovetails very nicely with digital document storage both for ourselves and our clients. 

 At Royal LePAGE Locations North we have implemented a "paperless" system for document transmission and storage.  For years we have heard how computers would reduce the use of paper, that day may now finally be here.

 July 1st is bring forth another noteworthy legislative change affecting real estate from both a REALTOR® and consumer perspective.  I will cover that in detail in my next post.