The Registrar of the Real Estate Council of Ontario (RECO) has posted a new bulletin on the use of electronic signatures during a real estate transaction.
The bulletin provides an overview of how the Electronic Commerce Act (ECA), 2000 governs the types of electronic documents a registrant may encounter during a transaction.
Specifically, the bulletin notes:
Registrants who do wish to take advantage of the provisions of the ECA must ensure compliance with the procedures and mechanics as outlined in the legislation (i.e., what types of agreements it applies to, ensuring the electronic documents are unalterable and stored adequately, etc.).
Ultimately it will be the courts that determine the applicability or exclusion of APS and like agreements under the provisions of the ECA. Until such time as sufficient legal precedence has been established, registrants are advised to act prudently and seek legal advice.
OREA is currently working with the Ontario Attorney General to amend the ECA to delete the existing exception of the real property transactions from the application of the Act. This would allow real estate registrants to use electronic forms for the purchase and sale of real property in Ontario.
I sell real estate in the U.S. and we have had electronic signing for a couple of years. Why does it take so long for OREA and RECO to get up to date on technology. Both organizations slowness is embarassing to the industry and affects the efficiency of our industry. Come on Canada!!! Snap out of the lethargy!!!
Matthew, can you check the link on the word bulletin ? It’s not pointing to the right bulletin. Thanks!
I agree that Canada is known for being more conservative than the U.S but look where moving full steam ahead got them. So Terry I wouldn’t talk to much about embarrassing the industry.
Terrific to see our American neigbours comments and access to our posted OREA and RECO information. “Canadian lethargy” I think not Terry, it’s better known as caution, something that if lending institutions in the U.S. along with other real estate practitioners and gov’t agencies had adhered to, would possibly have overted much of your present housing dilemma. Witnessed signatures along with supporting counsel from qualified real estate professionals, lenaders etc. aids the support of best practices in the industry. Live and learn!
Terry, OREA has been lobbying the government of Ontario to make changes to the Electronic Commerce Act. It is not RECO and OREA that are the issue here.