Ask AAR: Can Lender Refuse Electronic Signatures?

Pen Resting on Real Estate Contract

Image courtesy of Flickr user joebeone

Question: Recently a lender refused to accept an electronic signature on a purchase contract and demanded original signature. Is this legal?

Answer: While e-signatures have been gaining momentum, some institutions still refuse to accept them–despite the fact that electronic signatures are perfectly legal! To get the deal done, you’ll have to conform to their rules for now. But don’t let that stop you from lodging a complaint once the process is complete. If they get enough push back, perhaps they will change their tune.

Here is a related article from REALTOR® Magazine that provides additional background.

By the way, AAR will be launching an e-signature member benefit in 2011. Stay tuned for the details!

Did you know that you can submit questions to AAR using the “Ask AAR” form in the first column to the right? Your question may be featured in a future blog post.

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