Land Registry to accept electronic signatures

The Land Registry has announced plans to start accepting witnessed electronic signatures for deeds transferring land, with a view to taking steps to ensure that fully digital “qualified electronic signatures” can also be used in the near future. The move comes in response to the Covid-19 crisis, and follows the Law Commission’s recognition last September, in its report, Electronic execution of documents, that an electronic signature is capable, under English law, of being used to execute documents (including deeds) as long as the signatory intends to authenticate the document and the usual formalities are satisfied. Following consultation with representatives from regulators, trade bodies, conveyancers, lenders and estate agents, the Land Registry has issued draft practice guidance setting out the basis on which it will accept witnessed electronic signatures, and is inviting responses by 18 July. A further practice note will follow in the coming weeks on how qualified electronic signatures may be used. In his announcement, deputy chief land registrar Mike Harlow said that one of the more regular questions the Land Registry has received since the beginning of lockdown has been whether it could accept electronic signatures on things like a deed transferring land, instead of the longstanding requirement that they must be signed with a pen – a so-called “wet-ink” signature. He acknowledged: “At a time when most of us are working from home, printing, posting and scanning can be a pain. This is why we will soon start accepting witnessed electronic signatures and then take steps to ensure that digital signatures (more specifically Qualified Electronic Signatures) can be used when working with HM Land Registry.” Ryan Davies, real estate lawyer at Gowling WLG, said: “The announcement promises a positive change to facilitate modern transaction practices and will be most welcomed by the real estate market, especially during a time when most have to work from home to complete transactions.” Witnessed electronic signatures are a simple replacement of a wet-ink signature – so a deed that has to be signed both by the person “doing the deed” and a witness can be electronically signed by both. Digital signatures have different requirements and are more secure, because there is a process preceding them that positively identifies the signatory and the resultant document is encrypted so that it cannot be altered. Harlow said that qualified electronic signatures were once “a bit clunky to use” and impracticable for one-off use, such as in a house transaction. However, advances in technology mean that they can potentially now be accepted by the Land Registry. Harlow said: “We believe that a number of businesses that currently provide electronic signatures to other sectors should be able to quickly meet these criteria. On top of the other practice changes we have already introduced, this should provide conveyancers with immediate help in meeting the difficulties of working with paper in the current crisis.” He added: “It is obvious that the more digitally advanced sectors are those that have thrived in the last few months. Conveyancing is not one of those. It has some digital components, but they need to be joined up. Achieving a long-term, sustainable and secure means of signing property transactions would be a significant component of a wholly digital conveyancing process. “We believe Qualified Electronic Signatures are the right long-term component of that digital future. They have added security and the digital nature of the resultant document will enable joined-up and automated processing elsewhere in the transaction. “Our hope is that in the near future Qualified Electronic Signatures become more commonplace and the service providers tailor their use to conveyancing. If they do develop to be a successful option for completing property transactions, we will review the use of electronic signatures and may withdraw their acceptance, which would leave only the more secure Qualified Electronic Signatures in use.” The guidance is available here. Comments can be made here. To send feedback, e-mail jess.harrold@egi.co.uk or tweet @estatesgazette