Transitioning to Remote, Electronic Signing for Transactions

The recent move to more remote work environments has prompted many to take a second look at not only eSignature solutions but also remote online notarization (RON). In order to support transactional practice groups and legal department in making the transition to electronic signing and closings, one must understand the challenges and opportunities of these technologies.

Why Use eSignatures?

In the United States, the enforceability of eSignatures is broadly accepted. In fact, both state and federal statutes make clear that "a record or signature may not be denied legal effect or enforceability solely because it is in electronic form." Understanding that eSignatures will generally satisfy signature requirements for agreements in domestic transactions, they confer many benefits to assist attorneys in transactional practices:

• Secure audit trails. Documents and signatures are tracked and encrypted to ensure all transaction assets can be independently verified
• Authentication. Signatories can be identified using IP address, geolocation, multi-factor authentication or knowledge-based authentication
• Efficiency. Documents can be executed and delivered to clients in a fraction of the time of handwritten signatures
• Client experience. Parties can execute agreements from anywhere—on a laptop, phone or tablet — without the need for a printer or scanner

In the current environment of remote work, this last benefit is particularly important. Law firm clients who are increasingly working from home may lack the infrastructure to conveniently print, sign and scan documents back to their attorneys. The opportunity to sign transaction documents electronically from their laptop or mobile device conveys a compelling benefit to clients that they didn't know they needed prior to the global pandemic.