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Are e-Mail Signatures in New York Real Estate Transactions Legally Binding Yet?
Electronic signatures in general, and e-mail signatures (i.e., a typed name at the bottom of an e-mail) in particular, are widely recognized as legally binding in a variety of legal contexts, and the federal government and many states recognize electronic signatures as legally binding for the purpose of real estate transactions. New York State remains one of the few in which there is no legislation allowing for the use of electronic signatures for the purpose of creating a contract for the sale of real property. New York case law is divided on this issue, and thus fails to provide a clear answer as to whether an e-mail signature or other electronic signature may be used for documents related to real property.
New York State Legislation Governing Electronic Signatures
The Electronic Signatures and Records Act (ESRA), N.Y. State Tech. Law secs. 301-309, effective as of March 27, 2000, governs the use of electronic signatures in New York State. ESRA provides that unless specifically provided otherwise by law, signatures made via electronic means “shall have the same validity and effect as the use of a signature affixed by hand.” According to the act, the decision to accept an electronic signature is completely voluntary, and no one is required to use an electronic signature unless otherwise provided by law.
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