"Wet" signature: What in the world is that?

Buyers know that some real estate transactions must be notarized. You would expect the signing of a deed, for instance, to require notarization, but you may not be familiar with the term "wet" signature. That term simply means that an original document is required, and the signature usually must be in blue ink. When wet signatures are required, even a color copy will not suffice.

Many, probably most, home purchase contract documents now are passed back and forth between buyer and seller via fax or email. Any institution or seller who will accept faxed or emailed documents is one that does not require a wet signature. Most states now accept faxes and emails as legal documents and no longer require originals. There are some notable exceptions, however, and HUD is probably the most prominent.

If you are buying a HUD home, your agent will be required to send original documents to HUD, usually via overnight delivery. Documents will have to be printed in color and all signatures must be in blue ink. Once the original document is received and signed by HUD, subsequent documents, such as amendments, can usually be faxed or emailed.

The irony of HUD's demand for wet signatures, though, is that HUD now emails the signed document back to the real estate agent, rather than over-nighting a signed contract. Don't expect a wet signature back from HUD!