Electronic Real Estate Transactions – Digital NC Real Estate Deals Are Legal
WNC Brokers® like Dwain Ammons know how to put Digital NC Real Estate technology to work for you.
By working with Dwain Ammons, WNC Broker – Realtor®, you benefit from someone who has:
- Advanced training in the latest Digital NC Real Estate technology, including electronic transactions that make the North Carolina Real Estate buying and selling process easier for you. As a specifically trained and certified WNC Broker
- A comprehensive understanding of the ways marketing strategies and social networking can help you to a more successful transaction
- Achieved excellence in adopting, implementing, and promoting best practices across all forms of technology
- Access to ongoing education that allows them to stay up to date with the latest trends and techniques
- The knowledge and ability to safeguard your private information during any digital North Carolina Real Estate transaction
North Carolina laws regarding electronic signatures and transactions closely mirror those set forth in the UETA and ESIGN, including the following:
- The North Carolina version of the UETA, the aptly-named NCUETA, is found in NCGS Article 40, Chapter 66. The NCUETA regulates intrastate commerce, and requires that in a “consumer” transaction, a clear and conspicuous statement be provided to the consumer before that consumer consents to use electronic means in a transaction.
- It also requires that, in these transactions, a consumer’s consent to use electronic means be proven by their conduct when the consumer is presented with the disclosures required under NCGS 66-327 (c) (1)-(4). Brokers are responsible for providing disclosure of consumer rights, including the system requirements, when an electronic contract will be used for a transaction involving an owner-occupied dwelling, a rental property lease for personal use, or a lease of a dwelling built prior to 1978.
- While North Carolina law allows electronic records and signatures, it does not require them.
- Electronic signature laws only apply to transactions between parties if each party to the transaction has agreed to conduct it via electronic means. Whether the parties agree to use electronic means depends on the context surrounding the circumstances, including the parties’ conduct.
- The electronic record must be provided in a format capable of being printed, storage electronically, and retrieved for later reference.
- If a party agrees to conduct a transaction by electronic means, that person has the right to refuse to conduct other transactions electronically. A client may agree to conduct one transaction electronically, but then wish to conduct other transactions in the traditional “paper” way. (This right must not be waived by an agreement.) Any verbal conversations between two transaction parties shouldn’t be misconstrued as electronic record unless provided for under North Carolina state law.
Conducting Digital NC Real Estate transactions through email or other electronic means is becoming commonplace. Electronic contracting is a quick and efficient way for all parties involved in a real estate transaction (NC real estate brokers, NC clients, NC lenders, NC title representatives, etc.) to communicate information and to share and acknowledge the receipt of documents. It also saves time and money.
A record or signature can’t be denied its legal effect or enforceability solely because it’s in electronic format. In the same way, a contract cannot be denied its legal effect or enforceability solely because it was formed using an electronic record. If a North Carolina law requires that a record be in writing, a NC electronic record fulfills that legal requirement. If a North Carolina state law requires a signature, an electronic signature fulfills that requirement.
Uniform Electronic Transactions Act
The federal Uniform Electronic Transactions Act, or UETA, was enacted to give electronic signatures, records, and contracts legal recognition equal to that of paper records and signatures. UETA was brought about by the efforts of the National Conference of Commissioners on Uniform State Laws (NCCUSL) to harmonize state laws regarding the validity of these electronic records and to set more comprehensive rules regarding their use even in NC real estate transactions. The UETA applies to interstate transactions that involve at least one natural person who is buying or selling an owner-occupied dwelling, OR who is leasing a pre-1978 dwelling to use as their personal residence, OR who is leasing a vacation rental property for their personal use.
In effect, as long as the party can prove that an electronic version of a record or signature was the act of the individual, it is just as binding as a physical paper version, and may be used for record keeping or auditing purposes in North Carolina real estate transactions. The act further states that any law that requires a physical record will be satisfied by an electronic record, and that any signature requirement can be met by an electronic signature, which UETA defines as “an electronic sound, symbol, or process attached to or logically associated with a record and executed or adopted by a person with the intent to sign the record.”
ESIGN and E-Signature
The Electronic Signatures in Global and National Commerce Act (ESIGN) is a federal statute that was signed into law by Pres. Bill Clinton (who used his electronic signature) in 2000. ESIGN regulates interstate or foreign commerce.
The act specifies that the use of a digital signature is as legally valid as a traditional signature written in ink on paper, thus establishing that electronic contracts, e-signatures, and other electronic records are legally equivalent to paper counterparts.
Additionally, the act forbids any state or federal statute from requiring specific technology for electronic transactions and stipulates additional requirements relating to retaining contracts and records.
The act requires that consumers affirmatively consent before electronic records can be used to provide them with information that, under other law, must be available to them in writing. According to the act, before consenting, a consumer must be provided with a “clear and conspicuous statement” that outlines:
- The consumer’s right to have the record provided on paper
- The consumer’s right to withdraw consent and the consequences of withdrawing consent (fees, etc.)The scope of the consent
- How to withdraw consent
- How to update contact information
- How to receive a paper copy after consenting (and the cost of a paper copy)
ESIGN also specifies the following:
- Before the consent is given, the consumer must be provided with a statement covering the hardware and software requirements for access to and for retaining the electronic records.
- The consumer’s consent must be obtained or confirmed electronically (not just on paper).
- The manner of obtaining the electronic consent or confirmation must reasonably demonstrate that the consumer can access information “in the electronic form that will be used to provide the future information.”
- The consumer’s consent must be reacquired if there is a change in the hardware or software requirements needed to access or to retain the electronic record, and the change creates a material risk that the consumer will not be able to access or store records delivered electronically.
- Brokers must be diligent about using up-to-date cybersecurity measures
The North Carolina Real Estate Commission requires me to provide my clients with a Working With Real Estate Agent Brochure. Click on this Mandatory Brochure LINK for your copy. View the NC Fair Housing Disclosure Here
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All information deemed reliable but not guaranteed as listings and properties are constantly being updated. Lets discuss the absolute latest information by phone, in person or by email.
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