Electronic signatures in conveyancing - an update
Guidance has now been finalised and the Land Registry has momentously confirmed that it will accept electronic signatures from 27 July 2020.
We mentioned in our article on 10 July here that the Land Registry had published draft guidance setting out the basis on which it will accept for registration transfers (and certain other deeds) that have been signed electronically.
That guidance has now been finalised after a short informal consultation and the Land Registry has momentously confirmed that it will accept electronic signatures from 27 July 2020. The Land Registry’s requirements have not changed significantly from those summarised in our earlier article. However, where a witness is required, the process to be followed now allows as an alternative for the signatory to input the witnesses’ details (rather than those details being provided to the electronic signature platform at the outset by the conveyancer). This is a welcome change and reflects the fact that, at the outset, a signatory may well not know who they will ask to witness their signature.
The Land Registry does still require a one-time password to be sent by text message by the platform to a witness before a witness signs and adds their details to a document. This is potentially an issue where the platform used by a conveyancer does not currently offer this functionality. It is possible to circumvent this by treating the witness as if they were a party to the deed and providing their details to the platform at the outset, but this may raise significant confidentiality issues on certain transactions, as it may mean that the platform automatically sends the witness a copy of the completed document once it has been signed and dated.
Hopefully the platform providers can find a way to quickly and simply resolve this issue as it could potentially prevent wholesale adoption of electronic signatures by the real estate industry at a time when it is crying out for such innovation. In the meantime, the use of electronic signatures for documents registered at the Land Registry may largely be limited to those where UK companies are a party, who can execute documents through the signatures of two directors (or one director and the company secretary) without needing a witness.
The Land Registry has also added a paragraph to its guidance advising conveyancers to retain a copy of the completion certificate or audit report produced by the electronic signature platform at the end of the signing process. Such a certificate or report should help to inspire confidence and security in the signing process, as it will provide an audit trail of the process (e.g. the time and date of the signatures, the email addresses the document was sent to, the one-time password method used, the fields that were completed and the IP addresses of the devices that were used).
As mentioned in our previous article, the Land Registry remains keen to go further and introduce qualified electronic signatures as soon as possible (which are potentially more secure and will remove the need for witnesses in all cases). As and when the Land Registry is able to get these up and running, it is likely that simpler electronic signatures (the subject of the current guidance) will cease to be accepted by the Land Registry (so they may only enjoy a short shelf-life for land registration purposes).
Contact
David Harris
Professional Development Lawyer
david.harris@brownejacobson.com
+44 (0)115 934 2019
Related expertise
You may be interested in...
Legal Update
ASA ruling on Calvin Klein FKA Twigs advertisement
Press Release
Browne Jacobson successful for National Lottery in Court of Appeal
Opinion
Caregivers at work: Navigating new carer's leave regulations
Opinion
EHRC publishes new guidance on menopause and the workplace
Opinion
BBC personality wins appeal on IR35 status
Legal Update
Covid BI litigation (Autumn 2023): Insurance coverage disputes update
Press Release
Browne Jacobson advise Maven Equity Finance on investment in Traverse Associates
Press Release
Three strong restructuring and insolvency team join Browne Jacobson
Legal Update
How to negotiate better ‘green’ provisions in your leases
Opinion
The Metaverse's influence on real estate: Implications for commercial retail clients and law firms
Guide
How to manage retail sector supply contracts and avoid disputes
Legal Update
Utilising prime retail sites to improve the health of our nation
Legal Update
A new era of opportunity for high street regeneration?
Opinion
Practical points from High Court ruling that Tesco has infringed Lidl’s IP rights in its famous yellow circle logo
Legal Update
Pitfalls for retailers to avoid when offering access to ‘buy now, pay later’ products
Press Release
Browne Jacobson’s Manchester dealmakers advise Spatial Global on its acquisition of Heathrow based freight specialist Hollyport Logistics
Opinion
Supreme court rules on retail tenant's service charge bill
Published Article - Consumer Duty
Consumer duty part 3 - 'The drill-down' into the 'cross-cutting' rules
On-Demand
The UK's green agenda - the outcomes of COP27 and actions since COP26
Press Release
Browne Jacobson’s retail lawyers advise Wilko on its strategic £48m sale and leaseback of Nottinghamshire distribution centre to DHL
Press Release
Suzanne Harlow joins Browne Jacobson as Non-Executive Director
Law firm Browne Jacobson is pleased to announce that Suzanne Harlow has been appointed Non-Executive Director of its Retail, Consumer & Logistics sector.
Legal Update
Fashion retailers: Is this the end for free returns?
Published Article
AI generated designs on retail products
Every AI will have its own terms of use. DALL·E 2’s Terms of Use dated 3 November 2022 specify that as between a user and Open AI, a user owns their prompts and uploads. Open AI also assigns to the user all rights in any images generated by DALL·E 2 for that user (subject to the user complying with those Terms of Use, and to a licence to use inputs and output to develop and improve the services).
Published Article - Consumer Duty
Consumer duty part 2 - 'The drill-down' into the 'cross-cutting' rules
Published Article
Luxury brands and sustainability: The challenges and solutions
Legal Update
The Retained EU Law
Created at the end of the Brexit transition period, Retained EU Law is a category of domestic law that consists of EU-derived legislation retained in our domestic legal framework by the European Union (Withdrawal) Act 2018. This was never intended to be a permanent arrangement as parliament promised to deal with retained EU law through the Retained EU Law (Revocation and Reform) Bill (the “Bill”).
Published Article - Consumer Duty
Consumer duty part 1 - 'The drill-down' into the 'cross-cutting' rules
Press Release
Browne Jacobson appoints its first Non-Executive to Chair to support its corporate sector strategy board
Press Release - Firm news
Browne Jacobson strengthens its UK&I commercial practice with hire of new retail & consumer specialist partner
Browne Jacobson has bolstered its commercial practice in the UK with the appointment of commercial contracts and international trade specialist, Emma Roake, into its City-based London team.
Opinion
Cameras in convenience stores: a potential hornet’s nest..?
Published Article
Sole director decisions: Another perspective
Legal Update
Merger and Acquisition trends in the specialist lending market
Opinion
Court of Appeal overturns “fire and re-hire” injunction
The Court of Appeal overturned the “fire and re-hire” injunction, finding that there was nothing in the express contractual provisions preventing Tesco from giving the notice to terminate employment in the usual way.
Legal Update
The Omnibus Directive is almost here
Legal Update
W (No.3) GP (Nominee A ) Ltd and another v J D Sports Fashion Plc (Nottingham County Court, 22 October 2021)
The County Court refuses the landlord’s request to include a turnover rent in a statutory lease renewal.
Legal Update
Employment Tribunals 2022-23 – What to Expect
The Presidents of the Employment Tribunals England and Wales and Scotland have issued a new road map for 2022-23, providing an update on the resourcing challenges faced by employment tribunals and the steps put in place to address these.
Opinion
Government’s proposals for dealing with pandemic rent arrears finally reach the statute book
The Commercial Rent (Coronavirus) Act 2022 was finally passed yesterday (24 March) and comes into force immediately.
Press Release
Browne Jacobson broadens its construction offering with appointment of nuclear and renewable energy specialist
Browne Jacobson has broadened its national construction and engineering offering with the appointment of construction partner Zoe Stollard into its Birmingham office.
Opinion
Covid-19 rent arrears – the questions that remain
The Government appears set to announce plans on ‘living with Covid to restore freedom’. With the success of the retail and hospitality sector key to recovery, what protections will be on offer to tenants to deal with Covid-19 rent arrears?
Opinion
Are whistleblowers entitled to keep their employer’s confidential documents?
In Nissan v Passi, the High Court recently considered the issue of an employee retaining confidential documents belonging to his former employer in the context of the employer’s application for an injunction seeking the return of such documents from the employee.