The use of electronic signatures in real estate transactions is becoming increasingly popular, as there are many advantages to both the seller and the buyer — and even the other parties involved.
Before we talk about the benefits of using an electronic signature in the real estate sector, let us first define it.
According to the Electronic Signatures in Global and National Commerce Act (E-SIGN Act), an electronic signature is defined as “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.” In general, this means that any form of electronic communication can constitute a signature.
Electronic signatures are fast becoming a go-to digital tool in the real estate industry. They allow for a faster turnaround time for transactions and provide benefits to both the buyers and the sellers. Thus, more and more real estate professionals are turning to e-signatures to assist them in closing deals faster — so they can accommodate more clients. E-signatures speed up the closing process in a number of ways: simplify contracts, reduce paperwork, and save time and money for all parties involved. Sellers can avoid paying extra fees to escrow companies, while buyers no longer have to take off work to sign papers in person.
Here is a list of some of the top advantages of using electronic signatures in the real estate industry:
Time-Saving
There are so many benefits of using e-signatures in the real estate business, but one clear advantage is that it saves time. All parties can sign documents electronically without having to print them out and get physical signatures on paper contracts. This saves all parties involved a significant amount of time by eliminating extra steps in the process. Moreover, because e-signatures allow documents to be signed immediately or at a time that is convenient for the signer, all parties involved can get papers signed and returned quickly.
Easy Control
Electronic signatures are easy to control because copies can be stored for future use, whereas paper documents can get lost or damaged over time. Electronic files also have the advantage of being accessible by all parties in a deal that require them. No more waiting until everyone is home or at their office to sign something.
Reduced Costs
Using e-signatures has the added benefit of reducing expenses for all parties involved in a real estate transaction. Not only does it cut paper costs, but it also reduces the overall cost of physically signing documents or getting signatures on contracts. For example, escrow company fees go down when there are no longer any physical documents to pass around.
Cleaner Data
Electronic records are cleaner because they contain no erasures or stray marks that can come up when contracts are signed with an ink pen, for example. An additional benefit is that digital documents can’t be altered without everyone knowing about them since the data is stored in a database and isn’t easily changed.
More Security
Electronic signatures are more secure because there is no risk of physical documents being changed or tampered with. The data can’t get lost or damaged, plus it’s way easier to track down who signed what when everything is done through the Internet. Furthermore, electronic signatures ensure that the person signing the documents is actually who they claim to be.
Legal Protection
One of the biggest benefits of using e-signatures in real estate is to protect all parties involved from signing a contract they don’t understand or one that has been changed without their knowledge. Electronic signatures can be revoked anytime before a contract is fully executed, whereas paper documents cannot because once they are signed and exchanged, both parties are bound to the terms within them.
Easy Transmission
Electronic documents are easy to send because there is no need for fax machines or other equipment to get the job done. They can be sent through email or by downloading an electronic document management software that allows users to share, mark up, and sign any file easily with just one click. In addition, electronic documents can be seamlessly distributed among all parties involved.
Simpler Contracts
Electronic contracts are simpler to create and process because they can be done instantly without retyping endless amounts of text like with paper forms. E-signatures also make it possible for real estate professionals to generate templates that speed up the closing process for each client, which improves customer service interactions with clients.
Fulfillment Guaranteed
Electronic documents save everyone time and money by ensuring that contracts are fulfilled because transactions cannot be completed without everyone signing the document. If there is only one signature part of a contract missing, then nobody can legally move forward with any actions, which saves all parties involved from potential issues in the future.
Easily Accessible
Electronic documents are easily accessible for all who need to review them because they are stored in a database that is easily searchable. The data can be accessed anytime with just a click of a button, which makes these types of files very convenient for everyone involved.
Environmentally Friendly
E-signatures are environmentally friendly because paper documents don’t need to be retyped or used multiple times like with paper contracts, which reduces the demand for trees and other natural resources. With e-signatures, there is no need for ink pens or pencils either, nor do they produce harmful byproducts like the ink and lead from paper contracts.
Electronic signatures in real estate enable professionals to conduct business efficiently, resulting in improved customer service interactions. They also ensure that contracts are fulfilled, which saves everyone time and money. The benefits listed above are just a few of the many advantages of using e-signatures in real estate.
If you want to experience the advantages of using electronic signatures firsthand, you can subscribe to electronic signature applications. These systems enable you to sign and process documents quickly even when working remotely, plus they provide access to important documents wherever needed. Take the first step towards improving your everyday interactions with customers by choosing an electronic signature provider today.