What You Need To Know About "Wet Ink" Signatures.

Use digital signatures with confidence.

Author

Eli Zbar
November 22, 2023

Realtors, landlords, all sorts of people ask me “does this need to be wet ink signed?” - especially when it comes to tenancy forms and real estate contracts.

Let’s demystify a few things around wet ink signatures.

Generally speaking, you can digitally sign any contract governed by BC law unless it's specifically not allowed. The BC Electronic Transactions Act, SBC 2001, c.10, allows almost anything to be executed by e-signatures with some notable exceptions in section 2:

  1. wills and trusts created by wills

  2. powers of attorney, to the extent that they concern the financial affairs or personal care of an individual

  3. documents that create or transfer interests in land and that require registration to be effective against third parties

Item 3 is important - it means buyers and sellers can sign a Contract of Purchase and Sale digitally, but they must wet ink sign the actual title transfer documents with their lawyer.

🧠 Remember - whether digital or wet ink, all land contracts must be signed and in writing! The Law and Equity Act, RSBC 1996, c 253 section 59(3) says “a contract respecting land or a disposition of land is not enforceable unless there is, in writing signed by the party to be charged or by that party's agent, both an indication that it has been made and a reasonable indication of the subject matter”.

❗What about residential tenancy forms?

The BC Residential Tenancy Act has numerous requirements for notices to be “in writing” and “signed”.

Numerous previous decisions from the Residential Tenancy Branch affirm that digital records satisfy the “in writing” requirement, and digital signatures are valid.

1. Decision 6161 - tenant texted their forwarding address to the landlord. Arbitrator found the text was “in writing” in compliance with the Electronic Transactions Act and Residential Tenancy Act.

2. Decision 6250 - tenant sent a notice to end tenancy via email. Arbitrator found the “email signature” at the bottom of an email constituted a valid signature! Not even a DocuSign signature just an email! (note: I do NOT recommend using this method!)

💡Practical Tip for Electronic Signatures:

  • If you’re in doubt about using an electronic signature for something - ask a lawyer!

  • Use a reputable digital signature provider with a digital signature certificate and audit trail.

  • Keep your digital records safe, always have multiple backups because the Real Estate Services Act, SBC 2004, c 42 section 25 says:

    • A brokerage must maintain proper books, accounts and other records in accordance with the rules, and must keep these records in British Columbia.

  • All digital records must capable of being retained through the printing or storage of the record by the recipient. Use PDF or other broadly compatible formats wherever possible. Electronic Transactions Act section 5 says:

    • A requirement under law that a record be in writing is satisfied if the record is (a) in electronic form, and (b) accessible in a manner usable for subsequent reference.

Did You Know?

I offer real estate agents and mortgage brokers complimentary short phone consultations. Message me on WhatsApp, or book a call.

We are super transparent about pricing, check out our app at www.pricemyconveyance.com - it calculates property transfer tax, too!

Contrary to what people think, a lawyer is not more expensive than a notary. Remember that all lawyers are notaries, but notaries are not lawyers. In my experience, most notaries refer clients to a lawyer as soon as there’s a problem with a deal. Why not start with a lawyer?

A reminder that Arora Zbar LLP has 3 lawyers offering services in real estate transactions, corporate law, commercial litigation, tenancy/strata disputes, and estate planning.

Sincerely,

Eli Zbar

Lawyer