Question 10

Yes, because they are legal in real estate transactions.

Electronic signatures are indeed enforceable on real estate contracts, as they are recognized by various laws that validate their use in such transactions.

A) Yes, because they are allowed by the federal government.

While electronic signatures are permitted under federal law, stating that they are allowed solely because of federal endorsement is too broad. The enforceability of electronic signatures in real estate transactions specifically requires adherence to both federal and state laws, which may vary.

B) Yes, because they are legal in real estate transactions.

This option correctly highlights that electronic signatures are legal and enforceable in real estate transactions, aligning with the requirements set forth by the Electronic Signatures in Global and National Commerce Act (ESIGN) and the Uniform Electronic Transactions Act (UETA). These laws affirm the validity of electronic signatures in various contractual agreements, including real estate.

C) No, because they are only allowed on deeds.

This statement is incorrect as it misrepresents the scope of electronic signatures. Electronic signatures are not limited to deeds; they are valid for a wide range of real estate contracts and documents, making this option factually inaccurate.

D) No, because they must be signed and witnessed.

This option erroneously implies that electronic signatures require traditional witnessing, which is not a requirement under laws governing electronic signatures. While some documents may have specific witnessing requirements, electronic signatures themselves do not necessitate this, making the option misleading.

Conclusion

The correct answer is B, as it accurately reflects the legal standing of electronic signatures in real estate transactions. Options A, C, and D fail to capture the broader legal context and applicability of electronic signatures, thereby reinforcing the validity of the correct answer.