Electronic signature use
7 May 2025

Electronic signatures have made signing documents easier, faster, and more efficient. They replace the need for pen-and-paper signatures and allow people to complete transactions digitally. Since the Contract and Commercial Law Act 2017 came into effect on 1 September 2017, electronic signatures have become widely used for legal documents and transactions.

 

What Are Electronic Signatures?


An electronic signature is any digital way of signing a document. This could be typing your name, clicking “I agree,” or using special software to create a secure digital signature. Electronic signatures are recognised as legal and binding as long as they meet three key requirements:


  1. They clearly show the person intended to sign the document;
  2. They are reliable and appropriate for the document's purpose: and
  3. Both parties agree to use electronic signatures.

 

Using Electronic Signatures in Property Transactions


Electronic signatures are increasingly being used in property transactions. Lawyers and conveyancers use them to complete important steps like signing sale and purchase agreements or submitting documents to register the transfer of property titles.

 

In October 2024, the Authority and Identity Requirements for E-dealing Guidelines 2024 were updated, allowing Authority and Instruction (A&I) forms to be more readily signed and witnessed electronically. Electronic signatures on A&I forms must meet strict reliability standards under the Contract and Commercial Law Act 2017. This includes ensuring the signature is linked to the signer, under their sole control, and that any alterations to the signature or document are detectable. Practitioners must also retain digital signing logs as evidence for compliance.

 

Benefits of Electronic Signatures


  1. Fast and Convenient: You can sign documents anytime, anywhere - no need for printing or mailing papers.
  2. Cost-Effective: They save time and money by reducing the need for physical paperwork.
  3. Secure: Advanced software ensures the signatures cannot be easily altered or faked.
  4. Environmentally Friendly: They reduce the use of paper, making them a more sustainable option.

 

Challenges and Considerations


While electronic signatures are very useful, there are some things to think about:


  • Trust and Reliability: It's important that the signature method is secure and reliable, especially for high-value transactions.
  • Technology Needs: Both parties need access to the right tools to sign electronically.
  • Exclusions: Some documents, like wills and powers of attorney, cannot be signed electronically under New Zealand law. It is also strongly recommended that separation and relationship property agreements be signed in person unless there are exceptional circumstances.

 

Separation Agreements and Contracting Out Agreements



The Property (Relationships) Act 1976 requires that signatures be witnessed by a lawyer in order to be valid. To date, the law has not been tested as to whether this requires the signature to be witnessed in person. Given the importance of these agreements, specific clauses are put in these agreements if people are wanting to sign electronically. Certain procedures are also followed in the signing process. Electronic signing of these agreements is normally only done if it is not practicable for someone to attend in person.



Making the Most of Electronic Signatures


To use electronic signatures effectively:


  • Choose reliable software or platforms that comply with the Authority and Identity Requirements for E-Dealing Standard 2024.
  • Make sure all parties agree to use them beforehand.
  • Verify the identity of signers when needed, especially for important documents.
  • Retain evidence, such as digital signing logs, to meet legal obligations.

 

Electronic signatures are a legal and practical way to sign documents. They are particularly helpful for property transactions and have made processes smoother for everyone involved. With the clear guidance provided in the Authority and Identity Requirements for E-Dealing Guidelines 2024, electronic signatures are now even more accessible and secure for legal professionals. By understanding their benefits and being aware of their limitations, businesses and individuals can confidently use electronic signatures in their day-to-day dealings.

 

Please contact us if you need to know more about electronic signatures – we’re always here to help!

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