Tip: 28-2014: Are Docu-Signatures Acceptable on a Contract?

Are docu-signatures or e-signatures acceptable on a contract? A simple question with a complicated answer.

For traditional transactions, lenders may accept contracts with e-signatures. However, if a power of attorney will be used as part of the settlement, docu-signatures are not acceptable. With a docu-signature, there is no record of an original signature. As a result, if a power of attorney will be used, make sure to obtain wet signatures on the contract; otherwise, there could be a delay in closing. This need for wet signatures also applies for subsequent contract addendums. Be sure to check with the specific lender so that the exact requirements are understood and communicated to all parties.

Good Practice Tip: We recommend that with a docu-signed contract, the realtors after contract ratification should recirculate the contract and obtain wet signatures with the same dates. You never know when a lender and/or underwriter will require wet signatures.

Contact me at 434-951-0858 or Tucker@TGBLaw.com if you have questions.

 

William D. Tucker, III

Tucker Griffin Barnes P.C.

Charlottesville & Lake Monticello

434-973-7474

www.TGBLaw.com