Digital contracts are more efficient but are they legally binding?

With social distancing orders still in place and many people trying to minimise the amount of unnecessary human contact they are having with people; the pandemic has changed the way we interact meaning Digital contracts are now becoming a must in businesses around the world but how do you ensure they are still legally binding?

Digital contracts are more efficient but are they legally binding?

In truth, even if signing an old-fashioned paper contract, there is usually no way of you knowing at that point if the person is who they say they are or if they are using their real signature or some random squiggle. Fortunately in our industry we do have a level of safety in doing our job that protects us from sellers or landlords getting out of paying the professional fees in the sense that they need to agree photos, descriptions, viewings etc all throughout the process and as such it would be difficult for them to claim that they had never agreed for you to work for them.

However, there are a couple of extra layers of clever security that digital contracts sent out through the Lifesycle system bring to agents using it. One of them is two-factor authentication. Most of us have experienced this before at some point and the idea behind it is that the signatory will need to receive a verification code by text message to their mobile in order to complete their contract.

The other major benefit in this regard to having your contracts signed through the Lifesycle system is that it will record the IP address of the signing device, type of device used, time date etc.

Therefore, if you ever do find yourself in the unfortunate situation where someone is disputing signing your contract, you have much more evidence to hand to show that it would have been near on impossible for anyone else to have signed the contract.

With responsive forms and documents, from Lifesycle everything is easy. When you send a new contract to someone for them to sign it will resize your text for their particular device, making it easy for them to scroll through your terms just as they would when browsing a website. No pinching, zooming or swiping required! Just up and down to read through everything.

For the first time agents can now not only send responsive web based market appraisal reports with a button for the seller to simply click to say they would like to go ahead but they can also send their digital responsive contracts out from inside the Lifesycle system at no extra cost bringing yet another part of their business into one centralised system.

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