There was a time when signing important legal documents required an in-person meeting with a notary—someone who verified your identity, ensured you were signing voluntarily, and applied their seal as a mark of authenticity.
Today, companies like **DocuSign, DotLoop, and similar platforms** have removed that layer of security. They allow **critical documents, including real estate contracts, to be “signed” with nothing more than email validation.**
Let me be blunt—this is not just flawed, it’s dangerous.
The Illusion of Security
These platforms claim to simplify transactions, but in doing so, they sacrifice one of the **core tenets of legal signing: knowing who is actually signing.**
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- Validating that someone controls an email address is **not the same** as validating their identity.
- Email accounts can be **hacked, shared, or even spoofed.**
- This allows **fraudulent signings** to go undetected.
You might think, **”Surely this isn’t allowed for high-stakes transactions like real estate.”**
Unfortunately, it is. Despite the **high value and legal importance** of real estate transactions, **many platforms permit email-only validation** with:
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- **No verified ID check**
- **No real-time identity confirmation**
- **No notary involved**
Why Notarization Exists
Notarization has always served as a safeguard against fraud. A notary:
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- Confirms the signer is **who they claim to be.**
- Verifies that the signer is acting **willingly and knowingly.**
- Provides **legal defensibility** if the signature is challenged later.
Removing notarization **and replacing it with an email check** is an open invitation to fraud. Imagine:
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- Someone **gains access to your email**.
- They **digitally “sign” your property away**.
- Because the system relies on **email validation alone**, the fraud **may go undetected**.
This isn’t hypothetical—this is happening. Yet, **the platforms shift liability to users**, while profiting from a system that is **fundamentally flawed**.
Legal Loopholes and Industry Complacency
How is this even legal? The answer lies in outdated legislation.
Thanks to laws like the **E-SIGN Act** and **UETA**, electronic signatures are considered legally binding. However, these laws:
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- Are **technology-neutral**, meaning they **don’t mandate identity verification**.
- Assume that **all parties consent to e-signing**, ignoring the reality of fraud.
As a result, platforms **default to the easiest, cheapest option**—validating only an email address.
Why This is a Legal Time Bomb
It’s only a matter of time before a **major fraud case** blows this whole system wide open.
Imagine someone challenges a **fraudulent real estate sale**, arguing:
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- The signature was **forged using email-only validation**.
- The e-signature platform **didn’t verify the signer’s real identity.**
- The fraud resulted in **financial loss and legal consequences.**
A class-action lawsuit against these platforms could be worth **millions**, especially if courts determine they **failed to protect consumers from fraud**.
The Solution: Verified Identity in E-Signatures
Fixing this is simple—yet the industry resists it because **convenience is prioritized over security**.
A proper solution for real estate transactions would include:
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- **Government ID checks** before allowing an e-signature.
- **Biometric verification** (e.g., facial recognition with liveness detection).
- **Remote Online Notarization (RON)** to verify signers in real-time.
- **Immutable audit trails** to ensure legal defensibility.
A Call to Action
If you’re involved in real estate—whether buying, selling, or facilitating—you **should be concerned**.
If you’re a **lawyer looking for the next big case**, take a closer look at **the legal exposure** these platforms are creating.
The integrity of **property rights** should never be compromised for convenience.
It’s time to **demand higher standards** for digital signatures before the inevitable fraud scandals make the news.