Tech Corner: Digital Signatures and Record Retention

Digital signatures can help simplify the way real estate brokers handle contracts and agreements. It can save time, reduce paper waste, and expedite transactions.

However, while these tools make transactions more efficient, brokers must remember that technology does not replace compliance. North Carolina License Law and Commission Rules require brokers to retain all records related to a transaction regardless of the format of the original record (e.g., hard-copy or electronic).

The Commission does not require any specific format of record retention so long as the records are legible and available upon request. A broker is required to retain all records for at least three years following:

• the conclusion of the transaction, or
• termination of the broker’s agency relationship, and
• disbursement of all trust monies related to that transaction held by the broker, whichever occurs last.

The Commission does not recommend any electronic service provider over another.

In North Carolina, the Uniform Electronic Transactions Act (UETA), found in NCGS § 66-311 et. seq. applies to electronic records and electronic signatures in the conduct of a transaction, including a real estate transaction. UETA establishes the legal equivalence of electronic records and signatures with paper writings and manually signed signatures, removing barriers to electronic commerce. The responsibility for maintaining records rests with the broker, not the technology provider.

Best Practices for Digital Signature Use

1. Choose a Reputable Provider
   • Select platforms that comply with UETA.
   • Confirm the service offers downloadable copies so you can store them independently.
2. Maintain Multiple Backups
   • Keep electronic copies in at least two secure locations (e.g., encrypted cloud storage + a local backup drive).
   • Avoid relying solely on the platform’s storage in case your subscription ends or the provider changes service terms.
3. Verify Document Integrity
   • Download the fully signed version and review the audit trail to confirm all signatures and timestamps.
   • Lock or password-protect files to prevent unintentional edits.

NOTE: Commission Rule 58A .0104, requires that a broker provide AND REVIEW the Working With Real Estate Agents Disclosure. Agency principles require the review and explanation of all documents signed by the client. Brokers should also keep accompanying emails and notes that indicate they met these obligations, not just proof that the client signed the document.

Digital signature technology can streamline your workflow—but it’s only effective if paired with consistent and compliant record-keeping. Treat your electronic records with the same diligence as paper versions.