Law Society issues new practice note on use of electronic signatures in contracts

The Law Society has issued a new practice note confirming that most commercial contracts governed by English law can be validly signed with an electronic signature rather than needing ink on paper.

This follows the formal advice of Mark Hapgood QC.

Agents who have been hesitating about using documentation with electronic signatures may find this reassuring, while a number of agents have been comfortably using e-signatures for some time and finding them convenient, user-friendly and a big saver of time.

A number of firms offering e-signature solutions target the agency market and quite understandably, may use the new practice note to drum up business.

However, agents should be aware that the new practice note is specifically about commercial and not consumer contracts, where other issues come into play including a range of statutory consumer protections.

We therefore urge you to take your own professional advice, suitable for your own circumstances, and which takes into account situations where, for example, a signature needs to be witnessed, or identity documents have to be checked by physical means.

This could include agents’ anti-money laundering duties.

You should for example note that ARLA says that electronic signatures cannot be used on Right to Rent, as the legal requirement is to check the original ID document against the physical presence of the prospective tenant.

The Law Society also seems to think that solicitors will now widely adopt e-signatures. If they do, could it theoretically speed up conveyancing?

Law Society company law committee chair Elizabeth Wall said:Although e-signatures have been in use for some time, there has been no consensus among the legal industry on their validity. This practice note will help the industry get comfortable with electronic signatures and embrace the practical benefits of e-signing.”

The practice note specifically mentions property law.

David Woods, of law firm Greenwoods, said: “An electronic signature can take a simple form – a person typing in their name or pasting a representation of their signature will suffice.

“We should then be able to move away from the request to ‘print the attached document, sign it and scan it back to me’ in favour of ‘please add your electronic signature to the attached document’.

“This should help speed up the contracting process and hopefully save a few trees along the way.”

The new practice note is here

x

Email the story to a friend



2 Comments

  1. drasperger

    what should I do with my quill and wax seal now then?

    Report
  2. Chri Wood

    Hallelujah! Great News for everyone involved and a huge step forward for improving conveyancing times. Well done Law Society!

    Report
X

You must be logged in to report this comment!

Comments are closed.

Thank you for signing up to our newsletter, we have sent you an email asking you to confirm your subscription. Additionally if you would like to create a free EYE account which allows you to comment on news stories and manage your email subscriptions please enter a password below.