First Ever Paperless Transaction Closed by Lew Sichelman
A day before President Clinton signed legislation making electronic signatures legally binding, what is purported to be the first ever paperless, on-line real estate transaction was closed in Provo, Utah. The landmark electronic settlement involved the refinancing of an existing mortgage on a residential property and took place in iLumin Corp.'s on-line "signing room," a virtual, electronic room in which documents can be securely posted, edited and signed by parties to the transaction. The system uses iLumin's "Digital Handshake" technology, which enables everything from notarizing legal documents to filing to take place on the Internet. "This is a great example of how Digital Handshake streamlines, automates and simplifies everyday business transaction processes," said the firm's D. Brent Israelson. "In this case, we brought the parties together in an on-line signing room where they could vew, collaborate and finalize the legally binding documents." Besides the home owner, Pro-Title & Escrow of Provo, Allied Mortgage, DocuTech, eLoansource, lowRates, Escrowdata, Arcanvs and Digital Signature Trust participated in the transaction. Also involved were officials from Utah, one of 18 states that have enacted the Uniform Electronic Transactions Act, a law which addresses electronic records and signatures relating to transactions not already governed by other federal commercial law. Besides Utah, Arizona, California, Florida, Idaho, Indiana, Iowa, Kansas, Kentucky, Maine, Maryland, Minnesota, Nebraska, Ohio, Oklahoma, Pennsylvania, South Dakota and Virginia signed on to UETA. But several other states have enacted their own rules pertaining to digital signatures. |
