Yes! Electronic Signatures are Legal in Kansas!

     

   In the last 3-4 months, one of the most frequent questions I get is, "Karen are electronic signatures legal in Kansas?"  I am not sure what is prompting everyone to have this on the radar screen, but I hope it is because NAR has announced it's great new REALTOR Benefit partnership with DocuSign. 

       In case you have not checked this out this member benefit, you should, and I highly recommend you start using electronic signature in your business in 2010.  It will make life easier for you and for everyone involved in your transactions--from buyers and sellers to lenders involved in your transaction--can you say, "FASTER CLOSINGS"?

First, the legalities. I am quoting from an article written by Luke Bell, KAR Vice President of Governmental Affairs on the subject.  The entire article can be found under the FILES link here at the top of your page on Kansas REALTOR Family.  Here is the short version:

"Kansas adopted the Kansas Uniform Electronic Signatures Act (KUETA) in 2000. Under KUETA, any contract, record or signature may not be denied legal recognition or enforceability solely because it is in an electronic format. Where a statute, regulation or agency guideline requires a contract, record or signature to be inwriting, KUETA specifically allows electronic contracts, records and signatures to satisfy this requirement. However, if you would like to utilize electronic signatures and agreements in your business, please take note of these requirements and problems:

(1) KUETA allows the parties to real estate transactions to utilize electronic signatures and agreements when certain requirements are met.

(2) Although there is some uncertainty, it is highly likely that Kansas courts will determine that electronic records under KUETA satisfy any requirements that real estate documents be in writing.

(3) KUETA only applies in situations where the parties agree in writing to conduct their business through electronic means.

        (4) However, electronic signatures and agreements still need to satisfy all            requirements of abinding contract and signature and it can be much more difficult to  prove the intent of the parties when electronic signatures and agreements are used.

Second, DocuSign makes it really easy and inexpensive to use electronic signatures.  Under the NAR partnership agreement, you pay only $17.95 per month if you want to subscribe month to month, or $13.95 per month if you purchase an annual subscription, for an unlimited number of electronic signatures.  How much do you pay for one FedEx or other overnight deliveries?  Not to mention, what is your time worth?  Here is a link to the NAR member benefit page http://www.docusign.com/NAR/  They have a great little video in a box on the left side of the page where you can see how it works. 

My conclusion: Yes, when you follow the rules, electronic signatures are legal in Kansas and yes, they are really easy to use whn you use great products like DocuSign.