1.  Which documents can use an electronic signature and take legal effect?
  2. Which documents cannot use electronic signatures and take legal effect and why?
  3. What are the legal requirements for electronic signatures on documents
  4. Are there any proposals to change the law relating to electronic signatures?
  5. Are there any other factors which prevent documents being entered into in electronic format?

jurisdiction

Ireland

As a general rule electronic signatures can be used for all real estate documents that (i) do not demise a legal interest in property or (ii) do not require registration in the Property Registration Authority (“the PRA”). This includes:

  • Contracts for Sale;
  • Non-disclosure Agreements;
  • Pre-emption Agreements;
  • Licences for Works;
  • Licences to Occupy;
  • Licences to Assign/Sub-let;
  • Rent Deposit Agreements;
  • Side letters;
  • Revenue Filings; and
  • Exclusivity Agreements.

Any document through which a legal interest in property is being be created, acquired, disposed of, released or registered requires execution under hand (by an individual) or under seal (if a corporate). This position is set down in statute.

These include:

  • Deeds of Transfer, Conveyance and Assignment;
  • Lease and Sub-leases;
  • Deeds of Easements;
  • Debentures, Mortgages and Charges;
  • Wills and Declarations/Affidavits;
  • Deeds of Release.

Procedurally the PRA also requires that all applications lodged for registration must have wet-ink signatures.

Additionally, wet ink originals are required for certain registrations in the Companies Registration Office.

When using an electronic signature, under Irish law, the consent of the counterparty to the use of the electronic signature is required. This consent can be implied or inferred as there is no requirement for consent to be explicit. Best practice however is to include an assent to electronic execution within the agreement itself.

The Law Society of Ireland has issued a practice direction detailing the steps to be followed to ensure e-signatures are applied correctly to a range of different agreements and documents.

4. Are there any proposals to change the law relating to electronic signatures?

No, there are no proposals to revise the execution requirements for documents demising a legal interest in real property. Similarly the PRA has not indicated an intention to review its requirement for wet ink signatures. However, the Law Society of Ireland is examining the matter and may lobby for change.

5. Are there any other factors which prevent documents being entered into in electronic format?

No, in the real estate context the primary barriers for Irish documents are the legislative requirements and the PRA requirements. If the documents are being executed in another jurisdiction then the execution/witnessing requirements within that jurisdiction may also need to be considered. As a rule Irish real estate practitioners tend to favour wet ink signatures but recent developments have seen significant numbers within the profession, including the Law Society Conveyancing Committee, begin to explore the use electronic signatures in the context of real estate contracts