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E-Signature in Document Management - Megan Smale


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E-Signature in Document Management - Megan Smale

  1. 1. Closing the Loop The importance of document management in online leasing and electronic signatures
  2. 2. <ul><li>Megan Smale, Esq. </li></ul><ul><li>Corporate Counsel </li></ul><ul><li>RealPage, Inc. </li></ul>
  3. 3. <ul><li>Electronic Signatures </li></ul>
  4. 4. eSignature <ul><ul><li>Allows property managers to accept and execute legally binding electronic leases and other documents </li></ul></ul><ul><ul><li>When combined with document management, it satisfies the most stringent state and federal requirements necessary to ensure that an electronically executed lease is both binding and enforceable anywhere in the United States </li></ul></ul>
  5. 5. Why eSignature <ul><li>Technology trend in other industries </li></ul><ul><ul><li>SEC—Securities Filings </li></ul></ul><ul><ul><li>Google, Inc. 10 K Annual Report </li></ul></ul><ul><ul><ul><li>Reported $16.9 billion in top line revenue </li></ul></ul></ul><ul><ul><ul><li>Electronically filed using EDGAR, the SEC online filing system </li></ul></ul></ul><ul><ul><ul><li>Eric Schmidt, Chairman and CEO, eSigned to certify the report </li></ul></ul></ul>
  6. 6. Why eSignature <ul><li>Technology trend in other industries </li></ul><ul><ul><li>Federal and State Court Filings </li></ul></ul><ul><ul><ul><li>Federal courts use Electronic Case Filing (“ECF”) and pleadings are accessible on PACER, Public Access Court Electronic Records </li></ul></ul></ul><ul><ul><ul><li>ECF filings use eSignatures </li></ul></ul></ul><ul><ul><ul><li>Vioxx class action suit, which settled for $4.85 billion, was an ECF case </li></ul></ul></ul>
  7. 7. Why eSignature <ul><li>Technology trend in other industries </li></ul><ul><ul><li>Truth in Lending Act, Regulation Z – Federally required disclosures for home equity loans, credit cards, variable rate mortgages, and others may be delivered electronically </li></ul></ul><ul><ul><li>Department of Education – Paperless financial aid using a PIN. The e-sign on the FAFSA page uses Secure Sockets Layer encryption to protect the student’s confidential information. Smart cards can also be used to effect an electronic signature </li></ul></ul>
  8. 8. Why eSignature <ul><li>Technology trend in other industries </li></ul><ul><ul><li>It’s what the industry wants </li></ul></ul><ul><ul><ul><li>RealPage clients demanding this technology to be competitive </li></ul></ul></ul><ul><ul><ul><li>Camden recently completed first lead-to-lease completely online </li></ul></ul></ul>
  9. 9. Why eSignature <ul><li>Technology trend in other industries </li></ul><ul><ul><li>It’s what the industry wants </li></ul></ul><ul><ul><li>It’s what your customers want </li></ul></ul><ul><ul><ul><li>More people are self-service oriented </li></ul></ul></ul><ul><ul><ul><li>Generation Y does everything online </li></ul></ul></ul><ul><ul><ul><li>All generations getting comfortable transacting over the web </li></ul></ul></ul>
  10. 10. Why eSignature <ul><li>Technology trend in other industries </li></ul><ul><ul><li>It’s what the industry wants </li></ul></ul><ul><ul><li>It’s what your customers want </li></ul></ul><ul><ul><li>Go green </li></ul></ul><ul><ul><ul><li>Prius outsold the iconic Ford Explorer in 2007 </li></ul></ul></ul><ul><ul><ul><li>Environmentally friendly products and processes are fashionable </li></ul></ul></ul>
  11. 11. History of eSignature <ul><li>FEDERAL: </li></ul><ul><ul><li>The Electronic Signatures in Global and National Commerce Act (E-Sign), 15 U.S.C. § 7001 et seq. </li></ul></ul><ul><li>STATE: </li></ul><ul><ul><li>State-enacted versions of the Uniform Electronic Transactions Act (UETA) </li></ul></ul>
  12. 12. History of eSignature <ul><li>E-Sign Act Overview </li></ul><ul><ul><li>Enacted by Congress on June 30, 2000 </li></ul></ul><ul><ul><li>Ensures validity and legal effect of contracts entered into electronically </li></ul></ul><ul><ul><li>Electronic leases are fully enforceable </li></ul></ul>
  13. 13. History of eSignature <ul><li>Upon signing the bill into law, President Clinton stated, </li></ul><ul><li>“Under this landmark legislation … online contracts will now have the same legal force as equivalent paper contracts.” </li></ul><ul><li>Statement by President William J. Clinton Upon Signing H.R. 2130, 36 Weekly Comp. Pres. Doc. 1560 (June 30, 2000) </li></ul>
  14. 14. History of eSignature <ul><ul><li>A record or signature may not be denied legal effect or enforceability solely because it is in electronic form </li></ul></ul><ul><ul><li>A contract may not be denied legal effect or enforceability solely because an electronic record was used in its formation </li></ul></ul><ul><ul><li>If a law requires a record to be in writing, an electronic record satisfies the law </li></ul></ul><ul><ul><li>If a law requires a signature, an electronic signature satisfies the law </li></ul></ul>
  15. 15. eSignature Laws Requirements <ul><ul><li>Technological capacity </li></ul></ul><ul><ul><li>Non-repudiation </li></ul></ul><ul><ul><li>Signer authentication </li></ul></ul><ul><ul><li>Document authentication </li></ul></ul><ul><ul><li>Document integrity </li></ul></ul><ul><ul><li>Record retention </li></ul></ul>
  16. 16. eSignature Laws Requirements <ul><li>Technological Capacity </li></ul><ul><ul><li>Computer </li></ul></ul><ul><ul><li>Access to the Internet </li></ul></ul><ul><ul><li>Adobe Acrobat Reader </li></ul></ul>
  17. 17. eSignature Laws Requirements <ul><li>Non-Repudiation </li></ul><ul><ul><li>Electronic signer must expressly consent to electronic execution or </li></ul></ul><ul><ul><li>Signer must exhibit willful action </li></ul></ul><ul><ul><li>Consent by clicking “sign document” and entering password for each transaction </li></ul></ul>
  18. 18. eSignature Laws Requirements <ul><li>Signer Authentication </li></ul><ul><ul><li>Evidence attributing signature to signer </li></ul></ul><ul><ul><li>Prospect creates online username and password </li></ul></ul>
  19. 19. eSignature Laws Requirements <ul><li>Document Authentication </li></ul><ul><ul><li>Document fingerprint </li></ul></ul><ul><ul><li>Unique ESA ID </li></ul></ul>
  20. 20. eSignature Laws Requirements <ul><li>Document Integrity </li></ul><ul><ul><li>Evidence that document has not been altered </li></ul></ul><ul><ul><li>Prospect clicks “sign now” button and enters password, creating unique ESA ID </li></ul></ul><ul><ul><li>Document goes to document management system for signature and archiving </li></ul></ul>
  21. 21. eSignature Laws Requirements <ul><li>Record Retention </li></ul><ul><ul><li>ESA seal placed on executed lease </li></ul></ul><ul><ul><li>Document stored for seven years </li></ul></ul>
  22. 22. Defending eSignatures <ul><li>Defending a Challenged Electronic Lease </li></ul><ul><ul><li>The same rules for admitting an ink-signed lease apply to an eSigned lease – it must be “authenticated” </li></ul></ul><ul><ul><li>Each state has similar rules of civil procedure and evidence </li></ul></ul><ul><ul><li>Texas Rule of Evidence 902(11) defines electronic leases and eSignatures as “self-authenticating” </li></ul></ul>
  23. 23. eSignatures in the Multifamily Industry
  24. 24. Typical Online Leasing Life Cycle
  25. 25. eSignature Closes the Loop
  26. 26. The eSignature Process <ul><ul><li>Applicant creates online account </li></ul></ul><ul><ul><li>Locked PDF forms are presented for review </li></ul></ul><ul><ul><li>Applicant enters portal account password </li></ul></ul><ul><ul><li>Applicant clicks the “sign now” button </li></ul></ul><ul><ul><li>Locked PDF transmitted to secure document management system for signature </li></ul></ul><ul><ul><li>Locked and signed PDF presented to applicant with ESA seal </li></ul></ul>
  27. 27. eSignature Security <ul><ul><li>Federal Government grade security </li></ul></ul><ul><ul><li>CAS Technology protects “fixed content” information, i.e., content that is not intended to be and should not be revised </li></ul></ul><ul><ul><li>Documents are non-rewritable and non-erasable </li></ul></ul>
  28. 28. eSignature Benefits <ul><ul><li>True online leasing experience—no printing </li></ul></ul><ul><ul><li>Allows renters to do business on their terms </li></ul></ul><ul><ul><li>Allows you to go green </li></ul></ul><ul><ul><ul><li>Printing lease no longer necessary </li></ul></ul></ul><ul><ul><ul><li>Resident uses resident portal to access executed documents stored in document management system </li></ul></ul></ul>
  29. 29. eSignature Benefits
  30. 30. <ul><li>eSignature is the holy grail of the online leasing process. </li></ul><ul><li>A document management system makes it happen. </li></ul>
  31. 31. Questions?