DocuSign

Detailed Definition

DocuSign is an electronic signature software that enables users to sign documents digitally, thereby eliminating the need to print, scan, or fax paper documents. This innovative tool simplifies the signing process and makes it more secure, convenient, and paperless. DocuSign indicates specific places on a document where signatures, initials, and dates are required, drastically reducing errors and speeding up the process.

Features

Electronic Signature: Securely sign documents in electronic format.
Document Routing: Route documents to multiple signers with predefined signing orders.
Audit Trailing: Keeps a detailed report of the document’s history, including who signed and when.
Template Management: Create reusable templates for frequently used documents.
Accessibility: Sign documents from virtually any device, including smartphones, tablets, and computers.

Examples

Residential Real Estate
- A real estate agent emails a contract to a homebuyer for electronic signature. The buyer can review and sign the document from their home without needing to schedule an in-person meeting.
Commercial Real Estate
- A commercial landlord uses DocuSign to electronically sign a lease agreement with a tenant, thus accelerating the process of occupancy without the need for physical document exchanges.
Brokerage Firms
- A real estate brokerage sends listing agreements to multiple property owners. The software allows each owner to sign their part at their convenience, ensuring quicker and more efficient contract finalization.

Frequently Asked Questions (FAQs)

Is DocuSign legally binding?

Yes, DocuSign electronic signatures are legally binding in many countries, including the United States, under the ESIGN Act and the eIDAS regulation in the European Union.

How secure is DocuSign?

DocuSign uses world-class security standards including SSL encryption and identity verification to ensure that documents are signed securely and authenticate the signer’s identity.

Can I use DocuSign for more than just real estate?

Absolutely, DocuSign can be used in various industries including legal, financial services, healthcare, insurance, human resources, and more.

Do both parties need a DocuSign account to sign documents?

No, only the sender needs a DocuSign account. Recipients can sign without needing to create an account, even though creating an account can offer additional tracking and storage services for documents.

Can DocuSign handle multiple signature formats?

Yes, DocuSign supports various types of signatures, including typed names, uploaded signatures, and drawn signatures using a device’s touch capabilities.

E-signature: An electronic indication of consent or approval on digital documents.
ESIGN Act: The U.S. federal law that grants legal recognition to electronic signatures.
Audit Trail: A detailed chronological record that traces the sequence of actions or changes in a document.
Template: Pre-set formats of documents that can be reused for similar transactions.
Digital Document: Any document created, transmitted, or stored electronically.

Online Resources

References

ESIGN Act. (2000). U.S. Federal Law.
DocuSign Trust Center. Security and Compliance. Link.

Suggested Books for Further Studies

The Electronic Signatures in Global and National Commerce (E-SIGN) Act Essentials: 2021 Edition by Amanda Perry
Paperless Law Office: Solving the Paper Problem by Ernest Svenson
Going Digital in Real Estate: Transforming the Industry by Michael Snow

Real Estate Basics: DocuSign Fundamentals Quiz

### Is DocuSign legally binding in the United States? - [x] Yes, it is legally binding under the ESIGN Act. - [ ] No, electronic signatures are not legally recognized. - [ ] Only partially binding depending on state laws. - [ ] Binding only for governmental documents. > **Explanation:** DocuSign's electronic signatures are legally binding in the United States under the ESIGN Act, which provides legal recognition to electronic signatures used in contracts. ### What is one key feature of DocuSign? - [ ] Offers physical mailing of documents - [x] Provides an electronic audit trail - [ ] Requires both parties to have an account - [ ] Charges per signature > **Explanation:** One of the vital features of DocuSign is its electronic audit trail which records detailed information about the document's history, including who signed and when. ### Which regulation in the EU aligns with the use of DocuSign to ensure legality? - [ ] GDPR - [x] eIDAS - [ ] REACH - [ ] EUDPA > **Explanation:** The eIDAS regulation in the European Union aligns with the use of DocuSign, ensuring that electronic signatures are legally recognized. ### What does DocuSign eliminate the need for in typical document signing? - [ ] Emailing documents - [x] Printing, scanning, or faxing paper documents - [ ] Confirmation notifications - [ ] Mailing original copies > **Explanation:** DocuSign eliminates the need for printing, scanning, or faxing paper documents, making the process faster and more efficient. ### What is DocuSign principally used for? - [ ] Creating real estate listings - [x] Signing contracts electronically - [ ] Processing rental applications - [ ] Hosting virtual conferences > **Explanation:** DocuSign is primarily used for electronically signing contracts, streamlining the process across multiple industries including real estate. ### Can recipients sign documents sent via DocuSign without a DocuSign account? - [x] Yes, recipients do not need an account - [ ] No, an account is required - [ ] Only with a paid subscription - [ ] Only for specific contracts > **Explanation:** Recipients can sign documents without needing to create a DocuSign account, although having an account can offer additional features. ### What kind of document routing does DocuSign provide? - [ ] Random routing - [ ] Manual routing - [x] Predefined signing orders - [ ] ROS routing > **Explanation:** DocuSign provides predefined signing orders, ensuring that documents are signed in the correct sequence. ### Which device can you use to sign documents with DocuSign? - [ ] Only desktop computers - [ ] Only tablets - [ ] Only smartphones - [x] Virtually any device with internet access > **Explanation:** DocuSign allows documents to be signed from virtually any device including smartphones, tablets, and computers with internet access. ### What industry is NOT traditionally associated with the use of DocuSign? - [ ] Real Estate - [x] Food and Beverage - [ ] Legal - [ ] Financial Services > **Explanation:** While industries like real estate, legal, and financial services commonly use DocuSign, it is less traditionally associated with the food and beverage industry. ### What is a significant advantage DocuSign offers over traditional paper-based signing? - [ ] Reduced document length - [x] Increased efficiency and reduced need for physical signatures - [ ] Lower training requirements - [ ] Increase in hard copies produced > **Explanation:** DocuSign increases efficiency by reducing the need for physical signatures and handling of paper documents, making the process quicker and more seamless.