Electronic Signatures and Authorizations - Issue Summary
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| What is the fundamental issue? |
| The "Electronic Signatures in Global and National Commerce Act" became effective for transactions on October 1, 2000, and for record-keeping and filing on March 1, 2001. The law allows the use of electronic signatures, disclosures, and authorizations to replace paper versions. The law does not have any affect on the content of disclosures, or any party's rights or responsibilities. It requires no particular technology, but requires all parties to the transaction to agree on the method for electronically "authenticating" the contracts or documents. |
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| I'm a Realtor®. What does this mean to my business? |
| The replacement of paper documents with electronic ones will result in cost and time savings for REALTORS®. Anticipating savings include funds expended on paper, postage, and storage space for disclosures and authorizations. In addition, this type of legislation will also allow for a streamlining of the real estate transaction. Laws such as these will continue the promotion toward paperless transactions. |
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| NAR Policy: |
| NAR supports federal legislation to promote the enactment of uniform laws and regulations regarding electronic signatures. Any legislation should include adequate consumer protection provisions, including the ability of the consumer to choose a traditional paper transaction, and the continued applicability of all consumer disclosure and acknowledgment requirements of existing law. |
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| Legislative/Regulatory Status/Outlook: |
| State legislatures have been and continue to be the venue for further legislative activity since state statutes required amendments to allow the use of electronic documents for business transactions. |
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