Electronic signatures in real estate carry real legal and financial consequences. A closing document signed incorrectly — or with a platform that doesn't meet compliance standards — can expose your company to liability, delay transactions, or in worst cases, invalidate an agreement entirely.
Here's what closing agents need to know about the two laws that govern electronic signatures in the US, and how to make sure every transaction meets the standard.
The ESIGN Act: Federal Coverage
The Electronic Signatures in Global and National Commerce Act (ESIGN) was signed into law in 2000 and applies to transactions involving interstate or international commerce. It establishes three core principles:
1. Legal equivalence — An electronic signature cannot be denied legal effect solely because it is in electronic form.
2. Consumer consent — When consumers are involved, they must affirmatively consent to receive electronic records and can withdraw that consent at any time.
3. Record retention — Electronic records must be capable of being retained and accurately reproduced for reference by all parties.
UETA: State-Level Protection
The Uniform Electronic Transactions Act has been adopted by 49 states and provides the same protections as the ESIGN Act for intrastate transactions. Together, ESIGN and UETA cover virtually every real estate transaction in the country.
New York is the notable exception — it has its own Electronic Signatures and Records Act (ESRA) rather than UETA, but the protections are functionally equivalent for most real estate transactions.
What Your E-Signature Platform Must Provide
To be compliant under ESIGN and UETA, your electronic signature solution must:
Capture intent — The signer must take an affirmative action (clicking, typing, or drawing a signature) that clearly demonstrates intent to sign.
Maintain a complete audit trail — This includes timestamps, IP addresses, email addresses, and a record of every action taken during the signing session.
Produce tamper-evident documents — Once signed, the document must be sealed so that any subsequent alteration is detectable.
Store records reliably — Signed documents and their audit trails must be stored securely and be retrievable for the duration required by applicable law.
How REMMIS eSign Meets the Standard
REMMIS eSign is built with ESIGN and UETA compliance at its core. Every Packet includes a full audit trail, tamper-evident document sealing, and secure record storage — at no additional charge. There are no compliance add-ons to purchase or tiers that gatekeep legal protections.
The signing workflow captures affirmative consent at the outset, and every completed Packet generates a sealed record that includes the complete audit trail alongside the executed document.
Document Types That Still Require Wet Signatures
A small number of document types are specifically excluded from ESIGN and UETA. These include wills, codicils, testamentary trusts, adoption papers, court orders, and certain notices related to foreclosure. For standard real estate purchase agreements, disclosures, and closing documents, electronic signatures are fully enforceable.
Best Practices for Closing Agents
Keep a record of every signed document and its associated audit trail. Make sure your clients understand they are signing electronically and have the option to receive paper copies if they prefer. And always use a platform — like REMMIS eSign — that generates tamper-evident records automatically.
Questions about compliance? Contact our team — we're happy to walk you through how REMMIS eSign handles every requirement.
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