Dennis' Mortgage Blog

Below is contents of email I sent to real estate professionals earlier this week regarding the use of "DocuSign" software for offers and counter-offers.

Remember when agents began using fax machines to transmit offers?  Many in the industry lamented the lack of face-to-face offer presentations and the ability for a selling agent to address the seller directly with the strength of their clients.

Then came the age of email and no more shiny fax paper that yellowed as time went by.  You write your offer in your office, have your clients sign (press hard four copies), scan the offer and email it to the listing agent.

Now with DocuSign you don't even need to meet your clients to sing an offer or counteroffer.  Email the offer, your client clicks a few times with their mouse and send the offer back to you.  You forward the email to the listing agent, who forwards it to the seller, they make a few clicks with the mouse and it's time to open escrow.

But what if the email account has been hacked?  What if an estranged spouse knows that his wife's email password is 2haute2traute and "signs" and offer that is lower than what the spouse wanted?

Using DocuSign is a very cost effective and time effective way to get offers and counteroffers signed and distributed, but in using the service are you opening yourself up to potential litigation in the future?  Around the country some agents are being sued by home buyers or sellers who indicate they were not the individuals who "signed" the documents sent to them.

If you are using DocuSign some suggestions:

• Have a disclosure and acknowledgement form prepared for your clients to sign--with a "wet" or "live" signature
• In the disclosure bold and italicize and have client(s) initial section strongly recommending they change their email password to ensure privacy
• Have an acknowledgement for you can mail to your client to sign acknowledging they have e-signed the documents listed and sent

I came across this article on the Active Rain site in which an agent is lamenting banks not accepting offers using DocuSign.  Another note of caution, if you are showing a client REOs, or short-sales, contact the listing agent and see if offers made with DocuSign will be accepted.

DocuSign is a great program that has become standard with most transactions, but it is not fool-proof, nor more importantly fraud-proof. Protect yourself and take a few extra steps today to save potential costs and fees tomorrow.