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Using Docusign for your Real Estate Signatures: A Cautionary Note

By
Real Estate Agent with eXp Realty of California, Inc. CA DRE #01490977

Here in California we have a lengthy Offer to Purchase contract along with a long list of real estate disclosures (some statutory), both state and federal, that are part of the typical residential real estate contract. Getting signatures and initials in all the required places, and keeping track of paperwork can be a challenge, but is certainly a necessity. 

It becomes even more problematic when working with buyers and/or sellers who are out of the area.

Technology has made life much easier and faster, and faxing, or even better - scanning and emailing documents - is the way to go. And more and more of the other documents (escrow instructions, natural hazards disclosures, preliminary title reports) are now emailed in pdf form. Being able to store all docs electronically is so much safer and easier 

More and more transactions are using electronic signature applications, such as Docusign, to complete the process to obtain the required initials and signatures from all parties, including the agents. It's faster, and can save money as opposed to over-nighting contracts, plus you get clean copies versus the old fashioned fax machine (wow, I remember the days when faxed signatures were not even allowed). 

My Docusign signature - Jeff Dowler

But there is a caution. Some lenders will NOT accept electronic signatures on the contracts, as I learned in one transaction. So we had to re-circulate the contract to obtain the necessary live signatures. Not a big deal, since the original emailed offer from my buyers was submitted as a pdf with initials and signatures anyway. The lender continued processing the file with the Docusigned documents while they waited to receive the live signatures in the contract to complete the file. 

Docusign seems to be a cost effective application to use, beginning at $15.95/month, especially if there are multiple transactions. Thoughts? Anyone have good or bad experiences?

Posted by

Jeff Dowler, CRS
Certified Residential Specialist / Realtor®


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Rich Jacobson
Fathom Realty West Sound - Poulsbo, WA
Your Kitsap County WA Real Estate Broker

I've always wondered why PayPal hasn't jumped on this bandwagon? It seems that it would be a good fit for what they do, and the costs would be negligible.

Apr 22, 2009 08:29 AM
Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

Rich - good point. Time will tell.

Jeff

Apr 22, 2009 10:33 AM
Terry & Bonnie Westbrook
Westbrook Realty Broker-Owner - Grand Rapids, MI
Westbrook Realty - Grand Rapids Forest Hills MI Re

I am looking for a solution and hope to see one at the NAR convention in May. Keep us posted on your progress.

Apr 22, 2009 02:59 PM
Margaret Woda
Long & Foster Real Estate, Inc. - Crofton, MD
Maryland Real Estate & Military Relocation

Interesting solution in this tech-heavy world.  But I can see a seller questioning it, especially a bank.

Apr 22, 2009 11:04 PM
Lynda Eisenmann
Preferred Home Brokers - Brea, CA
Broker Associate ,CRS,GRI,SRES, Brea,CA, Orange Co

Hi Jeff,

I haven't heard of the becoming an issue for lenders, thanks for the heads up. I did have a situation recently when the buyer signed all the loan docs online.

Apr 23, 2009 03:45 AM
Elizabeth Bolton
RE/MAX Destiny Real Estate Cambridge, MA - Cambridge, MA
Cambridge MA Realtor

Hi Jeff ~ Another example of new trends starting on the West Coast I guess.  We still run into some resistance to faxed signatures at least on the original P & S.  I hadn't even heard of docusign - good to know.  Gotta say - I *love* our big office copier that scans - it transformed my work life.

Liz

Apr 24, 2009 12:57 AM
Dana Bostick
True Professionals, Inc. - North Hollywood, CA

Woah! Fax is sooooo last century! LOL  I use this method (but not this company) to do my sigs.  I am an Inspector and part of the time I do FHA finals that require a pdf that is signed by me.  I use a program called PDF Annotater from Gral software to open the pdf so that I can sign it on my Tablet PC.

http://www.grahl-software.com/en/pdfannotator/

Dana

Apr 26, 2009 10:39 AM
Melanie Ross
Coldwell Banker Solano Pacific - Benicia, CA
Benicia CA & Vallejo CA Real Estate, 707-319-2828

Love docusign and just starting using two months ago.  Some of my clients do not want to wait around after showing property and if they want to put an offer in  they now tell me to send via docusign.  Our investor clients cannot do with out it.  OF course some banks for the reos will not accept them, but it is gaining speed out there and acceptable.

Jul 26, 2009 04:28 PM
Richard Daskam
eXp Realty - Signal Hill, CA
Your Real Estate Consultant

I've heard a lot about Docusign and I guess now it's time to try it out!

Aug 25, 2009 03:48 AM