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Types of signatures

Handwritten signature

Signature entered by hand on paper.

Electronic handwritten signature

Signature entered by hand on an electronic device that captures the signature and its features, including execution time and pressure, for each segment of the signature.

Digitized signature

Handwritten signature that is digitized and saved on a computer, then copied onto an electronic document. Often seen on documents sent by fax or email.

Electronic signature

Electronic symbol representing a person’s consent to the terms of a document.

  • The recipient of a message is confirmed by password, SMS, personal questions.
  • Done by entering an electronic symbol in predetermined places on a document (PDF).
  • The document is encrypted and sealed.

Electronic signature system certification process

A certification process is set up by the OACIQ to ensure that electronic signatures could be safely used in real estate transactions.

Here is the list of solutions certified by the OACIQ to date:

  • e-Z-Sign of e-Z-max firm
  • Authentisign® of Instanet Solutions firm
  • NexOne Sign of Nexone Corporation firm

Rules to follow to use electronic signatures

  1. The broker must have his agency executive officer’s authorization. The AEO may establish certain guidelines governing the use of the electronic signatures system by brokers acting on behalf of the agency in his charge.
  2. The broker using an electronic signatures system must determine if the system is appropriate in each situation.
  3. The fact that a document or form is signed using an electronic signing process does not release the broker from his ethical obligations, including :
  • informing and advising his clients on the content the form he is asking them to sign;
  • sending without delay to his agency all documents required for the keeping of records, books and registers. If the agency does not keep these documents electronically but rather in hard copy form, the broker must provide a paper copy of the electronically-signed document (with the certificate authenticating the signature). But because there is a change of media (electronic to paper), this document remains only a copy. If you wish to destroy the source document (electronic) and make sure the paper document is legally valid, the media transfer must be documented. If there is no such documentation, the electronic document must be kept as it constitutes the original;
  • giving a duplicate of the brokerage contract to the client (residential brokerage);
  • verifying the identity of the client or the unrepresented party, even if this person is in a remote location.

A broker using an electronic signatures solution to have a document or form signed can do so in different ways. A document or form may be signed by all parties electronically, or using a mixed process.

Mixed process

A mixed process means that one of the parties hand-signs the document on a paper form, while the other party signs it electronically.

When a mixed process is used, the broker must digitize the hand-signed document in accordance with the rules governing electronic document management, i.e. by documenting the process before sending the document to the other party to sign electronically.

Conversely, to have the document hand-signed by the other party, the broker must print out the electronically-signed document. The electronic document containing the original signature must be kept along with a copy on which there is the handwritten signature of the second signatory. Therefore, there will be two documents on record to constitute the contract.

In some cases, the electronic signature process may be integrated to OACIQ electronic forms by Centris-InstanetForms, using an electronic document management (EDM) system, or simply by downloading a previously saved form.

Note: To preserve the concept of contract duplicate in residential matters, there cannot be two different signature methods (mixed process) when taking up a brokerage contract, for example, the broker signing manually and the client electronically. The broker should sign the document electronically and send it to the client so he can affix his electronic signature as well.

Document management following electronic signing

Once the electronic signature process is complete, the broker must send the document signed by all the parties, together with the certificate of authenticity, to his agency, which is responsible for maintaining records, books and registers.

The electronic result obtained may be inserted in the agency’s electronic document management system if the agency uses one.

In the case of an agency which does not use an EDM system, the documents must be printed and then filed in the agency's physical records. Paper records must also include indications regarding the location of the electronic documents that cannot be destroyed before the six-year period provided by the Act. In this context, caution must be exercised and adequate backups made in order to protect these files and identify them clearly.

Dates and times

The dates and times appearing on the documents or the certificates of authenticity may be based on Greenwich Mean Time (GMT) or on another time zone. In Québec, local time is either Eastern Standard Time (EST) or Eastern Daylight Time (EDT), depending on the time of year.

This could require additional signature management, including to ensure that the acceptance period of a promise to purchase (PP) or a counter-proposal is respected, establishing a legal bond between the parties. For example, for a promise to purchase that is accepted and signed by a seller at 10:00 a.m. on October 2, 2013, Eastern Standard Time, the promise to purchase or the certificate of authenticity could read 14:00 GMT, October 2, 2013.

To check the local date and time of signing of an electronically-signed document or form, visit the Greenwich Mean Time website at www.greenwichmeantime.com.

Acceptance period to indicate on the promise to purchase (PP)

Is local time the time at which the promise to purchase is drafted, or the time at which it is sent?

The forms indicate that transactions are subject to the laws of Québec, which suggests that the reference should be to the Québec time zone.

When in doubt, and to avoid confusion, when a PP involves several time zones (e.g. Québec for clause 14 and the signing of the first part, and California for the location of the other party and the location indicated when signing electronically, or GMT for the purpose of our example), a good practice would be to specify the time zone used on the PP itself.

ROLES AND PRACTICES OF THE AGENCY EXECUTIVE OFFICER

 

The agency executive officer may impose rules on the use of an electronic signatures system by brokers acting on behalf of his agency (circumstances where it can be used, obligation to inform the client of the content of the document he is about to sign and the process that will follow, forwarding of documents to the agency, etc.).

Recommend the use of an electronic or digitized signatures system certified by the OACIQ.

The use of a non-certified system is not recommended because it exposes you and your clients to many risks, including:

  • the signature appended electronically on a document can be considered invalid, thus jeopardizing the agreement reached;
  • the personal information of parties to a transaction may not be protected;
  • the impossibility of recovering certain data from service providers;
  • the OACIQ may not be able to intervene should a problem occur, since it does not have any agreement with the provider.
  • Make sure procedures are understood and followed by users.
Reference number
208351
Last update
February 3, 2022