Electronic signature as a game-changer
Advancing digitalisation is making its presence felt in almost all sectors – including the real estate industry. It is not without reason therefore that more and more companies are digitalising their business processes. The advantages are manifold, including saving time, reducing costs and conserving resources.
An important building block for digitalisation in the real estate industry is the introduction of an electronic signature solution. This allows processes to be significantly accelerated and organised more efficiently.
Table of contents
Why the property sector in particular benefits from electronic signatures
The property sector has changed a huge amount in recent years. All processes are becoming increasingly digitalised. People can now place ads online and submit tenant information with Schufa and all other documents via online portals. Even online viewings with VR glasses are now possible.
The last and most important link in the chain is the conclusion of the contract. The option of concluding contracts digitally is particularly beneficial to the property sector, as buyers and estate agents are often located in different cities or countries, and face-to-face meetings are time-consuming or not even possible in some cases.
Electronic signatures are a paperless alternative to handwritten signatures that can be used to make declarations of intent regardless of time and place. All you need is a computer, smartphone or tablet.
These are the main advantages at a glance:
Conclude purchase and rental agreements more quickly
In the property industry, many documents such as rental and purchase agreements have to be signed. Our experience shows that most signature processes with e-signature solutions are completed within a day, whereas paper-based signatures can take days or even weeks.
Digital contracts do not have to be printed and sent by post
The digitalisation of signature processes not only saves time, but also money. There is no need to print out paper documents, send them by post or travel to the customer. There is no need to store physical files anymore either.
Conserve natural resources
Become flexible: Estate agent & prospective buyer/tenant benefit
Avoid media disruptions - complete digitalisation
Contracts are often scanned again after signing and archived digitally, although the legal weight is lost through scanning. With an electronic signature solution, media disruptions are avoided and verifiability is maintained. In addition, electronic signature solutions can even be integrated into your own system landscape so that all steps are carried out in a continuous process.
Documents that can be signed electronically
The simple electronic signature (ES) is, as the name suggests, easy to create, as it is not subject to any conditions, but is difficult to prove. An example of this is a scanned signature or the name under an e-mail.
The advanced electronic signature (AES) uses signature certificates, as they are known, in which information about the signatory, validity and changes is stored. The AES is legally secure and verifiable, and can be used for all documents for which the legislator does not prescribe a written form.
The qualified electronic signature (QES) requires the signatory to be identified before signing and is required for all documents for which the legislator prescribes the written form. Most documents can be signed with an advanced signature. However, there are some special cases in the property sector that require a qualified signature.
Here are some examples of application:
| Document | Signature level |
|---|---|
| Open-ended rental and lease agreements | ES, AES, QES |
| Fixed-term rental and lease agreements (less than 1 year) | ES, AES, QES |
| Self-disclosure | ES, AES, QES |
| Brokerage contracts | ES, AES, QES |
| Handover certificates | ES, AES, QES |
| Rent increases | ES, AES, QES |
| Letters for exercising options | ES, AES, QES |
| Non-conformance reports | ES, AES, QES |
| Modernisation announcements | ES, AES, QES |
| Fixed-term rental and lease agreements (more than 1 year) | QES |
| Index-linked rental agreements, graduated rental agreements | QES |
| Notice letter for residential rental agreements | QES |
The table above makes it clear that you should find out about the necessary signature forms before introducing an electronic signature solution in order to ensure legally compliant processes.
What might also interest you
Our industry site contains further potential applications of the electronic signature solution in the property industry.
How is a qualified electronic signature created?
The qualified electronic signature has the highest security level according to SES and AES. It requires the signatory to be identified before actual signing.
This process usually involves the following steps (using the example of inSign):
- The relevant document is loaded to the signature software. The signature field is set, the signature level QES is defined and the document is sent to the signatory.
- The signatory creates an account with a trust service provider and identifies themselves once, e.g. with video or eID identification.
- The signatory receives a TAN that they use to confirm their smartphone as the second factor.
- A qualified electronic signature is then generated.
PRO IMMOSERVICE signs digitally
“The process of getting a signature has been slimmed down considerably. Gone are the days of endless waiting for the business partner to sign. In the past, it often used to take one to two weeks for the signed documents to be back in the office – with inSign, it now only takes one or two hours!” – says Thorsten Mahlfeldt (certified administrator (IHK), property management officer) in an interview.
Summary
An important component of the digitalisation concept is the electronic signature. You can find general information on electronic signatures in our 1 x 1 of the electronic signature. If you are interested in our software solution, you can sign up for a free inSign trial and familiarise yourself with the application.
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