Don't E-Sign Your Life Away

In this era of electronic communication, many people don't realize that simply typing their name at the bottom of an email and hitting send could be the equivalent of signing a real estate contract. "Although online negotiations are common, real estate buyers and sellers often mistakenly believe that no contract is created until a paper document is signed with a pen signature," say Tom Matyas and Susan Kim of the Real Estate Practice Group at Chicago-based Wildman Harrold. "It comes as a quite a surprise to many that hitting the send button can have the same effect as an ink signature. The real estate industry has reputation for thinking that it, unlike the rest of the business world, is somehow exempt from our electronic age, and this unawareness can cause problems when it comes to contracts." Like any contract, a real estate contract that contains the required terms will be valid if it is in writing and signed by the parties. "By law in all 50 states, an electronic record, such as an email, will satisfy the 'writing' requirement and an electronic signature, such as a typed name beneath the message, can satisfy the 'signature' requirement," adds Tom Smedinghoff of the firm's electronic transaction law practice. Matyas, Kim and Smedinghoff are available to write an article discussing contract law as it applies to electronic signatures and how to avoid entering into unintended binding agreements through email which could involve leases, loan commitments, options and others types of real estate transactions. They are also available for interviews. [04/10/2008] News Contact: Tom Stanton Email: tstanton@jaffepr.com Phone: 773-307-2336