Just wondering – If a Bank Denies an Electronic Signature, Is it Illegal?
Banks/lenders and misunderstanding underwriters and the accompanying systems are the single greatest holdup in the evolution of the real estate from always requiring “wet” signatures” to understanding the electronic signatures are efficient and legal and, as opposed to sixth-generation contracts, legible. Electronic signatures are finally here; and I’m going to use them.
From the Code of Virginia:
§ 59.1-485. Legal recognition of electronic records, electronic signatures, and electronic contracts.
(a) A record or signature may not be denied legal effect or enforceability solely because it is in electronic form.
(b) A contract may not be denied legal effect or enforceability solely because an electronic record was used in its formation.
(c) If a law requires a record to be in writing, an electronic record satisfies the law.
(d) If a law requires a signature, or provides for certain consequences in the absence of a signature, an electronic signature satisfies the law.
I am now at the point where I will not be recommending lending who inconsistently do not understand and implement the *law*. I tell my clients why I recommend some and don’t recommend others; they are free to disregard my advice; it’s their decision.