In Short
The Situation: The novel coronavirus (COVID-19)
has prompted a sharp rise in electronic transactions, but
contracting parties must be mindful of the requirements for
electronic signatures and remote online notarization.
The Problem: While electronic signatures are
valid in most circumstances, there are important exceptions, and
only 22 states currently permit remote notarization by statute.
Looking Ahead: The legal landscape is evolving
quickly. Two U.S. Senators introduced a federal bill to immediately
allow remote notarization nationwide, and three states have already
taken emergency action.
Electronic Signatures
Electronic signatures can take many forms, including PDFs,
screenshots or photographs of "wet ink" signatures,
digital signatures executed with the assistance of software, and
typed names in emails or at the end of text messages.