Humber/Ontario Real Estate Course 2 Exam Practice

What is a crucial element of ensuring the legality of electronic signatures in real estate agreements?

1. The signatures must be written with a stylus or finger.

2. The parties must use government-approved software.

3. The technology must be capable of verifying the identity of the signatories.

4. The signatures must be witnessed by a third party.

The correct answer is: The technology must be capable of verifying the identity of the signatories.

A crucial element of ensuring the legality of electronic signatures in real estate agreements is that the technology used must be capable of verifying the identity of the signatories. This is essential to confirm that the individuals signing the document are indeed who they claim to be, providing assurance and security to the transaction. By utilizing technology that can authenticate the identity of the signatories, the electronic signatures can be considered valid and legally binding. Regarding the other options: A. The signatures being written with a stylus or finger is not a crucial element in ensuring the legality of electronic signatures. The method of physically signing with a stylus or finger does not impact the legality of the signature itself. B. While using government-approved software can be beneficial, it is not the crucial element in ensuring the legality of electronic signatures. The key aspect is the ability of the technology to verify the identity of the signatories, regardless of whether the software is government-approved. D. Signatures being witnessed by a third party is not a requirement for electronic signatures to be considered legal in real estate agreements. The essential factor lies in the technology's capability to verify the identity of the signatories.