The Real Deal
Sign on the dotted line... amd do it the new way
In June, President Clinton signed legislation that will make electronic signatures equal to those signed in pen and ink. "Online contracts will now have the same legal force as equivalent paper contracts," Clinton said when he signed the bill. The new law provides that no contract, signature or record shall be denied legally binding status just because it is in electronic form.
What this means to homebuyers and sellers is that mortgage companies and real estate agencies will be able to retain electronic contracts and documents of legal record such as purchase contracts, financing agreements and insurance documents that were signed electronically.
Today, legal papers must have an original signature in order to be valid in a court of law. With the help of a wallet-size, chip-embedded plastic card that contains your signature, you will be able to process contracts through the Internet.
"With the swipe of a smart card and the click of a mouse, customers will be able to finalize mortgages, sign insurance contracts, or open brokerage accounts," added Clinton. During the signing ceremony, President Clinton inserted a card encoded with his signature into a computer and entered a password, in this case, "Buddy," the name of his dog. The encoded signature was then scanned onto the document.
Real estate agencies, insurance brokers and lending institutions have been automating the various components of a property transaction over the last few years. Potential homebuyers can now search for a home or a geographical area online, obtain quotes on mortgages, receive up-to-the-minute emails from their Realtor on property listings, and very soon, sign contracts ... all from the chair in front of their computer.
The Silicon Valley real estate industry has been at the forefront of employing the advantages of technology to simplify the transaction process for the local consumer. Don't be surprised if the next time you are in the market to purchase a home you see your Realtor use a cell phone to dial up the multiple listing service on his or her Palm Pilot, download contracts and disclosure information on a laptop that allows you to "sign" the documents with something that resembles a credit card!
Though technology has come a long way to improve the process of buying a home, it still can't replace the personal knowledge of an experienced Realtor. The Internet offers information. Cell phones, Palm Pilots and laptop computers allow industry professionals to stay in touch with the latest information and communicate with their clients. Experience, knowledge and skilled negotiating can only come from human beings ... at least for the present.
Information provided in this column is presented by the Realtor members of the Silicon Valley Association of Realtors. Send questions on any topic to: Ask Your Realtor, c/o SILVAR, Los Altos District, 345 San Antonio Road, Los Altos, CA, 94022; call 650.949.9115; or send email to ppompei@siliconvalley-realtors.org.
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Los Gatos, California Since 1881
