Esign on the Dotted Line
Have you ever sent an engagement agreement to a potential client, never to hear from them again? Waited on the mail to get a signed document so you can move the matter forward? Sent an MS Word document or image only PDF to a client for signature? In addition to improving your client-centric focused practice, electronic signature tools can help eliminate these roadblocks to move forward.
Electronic Signatures and the Law
You may have trepidations about using electronic signatures. At the federal level there is the 2000 Electronic Signatures in Global and National Commerce Act (ESIGN Act). This act covers all types of electronic signatures, from a scanned image to clicking “I agree” on a website to typing your name into an online form.
At the state level 47 states and numerous territories enacted UETA, the Uniform Electronic Transactions Act of 2000, including North Carolina. The few states that did not enact UETA have similar state laws.
Over the years UETA has been applied to real estate transactions between parties, educational entities, government, courts, and businesses. Also law firms. Many lawyers are nervous about accepting electronic signatures. There are exceptions to UETA and the ESIGN Act that apply to legal documents that lawyers draw up every day including wills, some trusts, powers of attorney, certain UCC documents and consumer protections statutes. Lawyers should familiarize themselves with applicable laws. For the purposes of agreements between lawyers and clients, electronic signatures are mostly permissible. This includes engagement and fee agreements, closing letters and other documents that attorneys request signatures from clients.
Of note, there is a distinction between electronic signatures and digital signatures. All digital signatures are a type of electronic signature, however digital signatures include authentication, secure transfer, and document integrity. If you are collecting other information that includes personally identifiable information like social security numbers, you will need to ensure that the collection and transmission methods are encrypted and secured in transit and storage.
Esignature Tools and Features
There are a lot of tools on the market that make setting up, sending, receiving, and tracking electronic signatures easy. They can be incorporated into your workflow. Instead of sending a MS Word document to a client to be signed – that requires the recipient to have a printer, scanner or an envelope and stamps, plus the time and inclination to follow through – you can send an engagement agreement through an electronic signature tool and they can open it, fill in information as needed, sign it with a mouse/by typing/on a smartphone, and send it back. They will automatically receive a finalized version of the document with an audit trail. What’s worse than sending a Word document to be signed? Sending a PDF form that isn’t fillable. Use an electronic signature tool that builds in security, workflows, and authentication. Electronic signature tools typically provide:
- Templates
- Form fields
- Data masking (to hide PII)
- Multiple signers in order
- Reminders
- Passwords
- Expiration dates
- Automated sending of finalized documents
- Reporting
- Audit and history
Products on the Market
Adobe Sign is built into Adobe Acrobat DC. You may already have it and not realize it is there, or at least realized that there are more options if you dig a little deeper. Other robust PDF creation and manipulation tools like Kofax (f/k/a Nuance) or NitroPDF have e-signature workflows.
Other tools you have may already have electronic signature workflows built in. For instance, Clio Manage Boutique and Elite plans include electronic signatures through a HelloSign integration (no need for a separate account). Many other practice management applications are adding electronic signature functionality. Citrix ShareFile includes RightSignature. RPost has multiple electronic signature workflow tools. CRM tools like Lawmatics have built in electronic signature tools. Check to see if the products you use have an add-on, integration, or functionality already to collect electronic signatures to reduce disruption in your current workflows.
There are plenty of stand-alone e-signature tools like HelloSign, DocuSign, PandaDocs, RightSignature, and many more on the market. When looking for an electronic signature product you will want to look at price, functionality, storage space, number of signatures, integrations with other technology you use, and security features.
Conclusion
There are lots of ways to get signatures from clients virtually. If you do not need a “wet” signature you can collect them via a variety of esignature tools, including through products you may already. There are plenty of third-party options. Or, if you feel more comfortable seeing the client or parties sign, you can use the Acrobat app, SignMyPad or the MS Office App to have the user sign a document with a stylus a mobile device like an iPad or smartphone. Electronic signature tools are also essential to a paperless law office. From prospect to close, keep your clients and matters moving forward with electronic signature tools.