Are Electronic Signatures Legal in the U.S.? What You Must Know in 2025

In this modern time, many individuals and businesses are leaning towards digital solutions, and electronic signatures are one of them. They are quick, easy to use, and allow agreements to be completed from almost anywhere, without the need for paper.

However, many still question whether electronic signatures are legally valid in the US and when they can be used.

In this blog, we’ll answer all these questions and explain what you need to know about the legal status of electronic signatures in 2025, including their requirement for legal validity and when they’re accepted. So, let’s dive right in.

Are Electronic Signatures Legal in the US?

If you also wonder whether electronic signatures are legal in the US or is esignature valid in court, then the answer is yes to both these questions. The electronic signature law in the USA gives esignatures the same legal value as handwritten signatures in all states where federal law is applicable.

Two key laws support the legal recognition of electronic signatures. These are:

• Electronic Signatures in Global and National Commerce Act (ESIGN): This law was enacted in 2000 in all the states and territories where federal law is applicable. This esign act grants electronic signatures the same status as handwritten ones for most business, consumer, and commercial transactions in all states and international territories.
• Uniform Electronic Transactions Act (UETA): This act was introduced in 1999 and was adopted by 49 states, including the District of Columbia, the US Virgin Islands, and Puerto Rico. New York is the only state that has not adopted this act. However, it has its own electronic signature law called the Electronic Signatures and Records Act (ESRA). Under the UETA, electronic signatures and records are legally valid and can be enforced within the jurisdictions.

What is Required for an Electronic Signature to be Valid?

Just because you signed a document electronically does not always mean it is legally valid. For it to be valid under the ESIGN Act and UETA Act, it must meet four main conditions:

1. Intent to Sign: The person signing the agreement or contract must clearly show that they meant to sign the document. This can be done in many ways, like clicking the “I Agree” button, typing their name on the document, or drawing their signature with a mouse or finger.
2. Agreement to Use Electronic Signature: Everyone involved in the contract must agree to use electronic methods for the transactions. This agreement can be given by checking a box or by continuing with a process that clearly requires an electronic signature.
3. Connection Between the Signature and the Document: The electronic signature must be directly linked to the signed document. It should not be separate or added in a way that makes it unclear what it applies to.
4. Proof of Who Signed and Record Keeping: The system must show who signed the document and keep a secure record of the process. This usually includes important details such as:

• IP address
• Time and date when the document is signed
• Method of verification (like email or text confirmation)
• A record of any changes made to the document

For this purpose, many trusted electronic signature apps are built to meet these requirements, like SignBulb, DocuSign, Adobe Sign, and many more. These esignature apps have strong security features and detailed records that often make electronic signatures easier to verify than the traditional paper ones.

What are the Common Exceptions Where Electronic Signatures are Not Valid?

Even though electronic signatures are widely accepted, there are still a few types of documents that usually require a handwritten signature or have additional rules:

1. Wills, Testamentary Trusts, Codicils: Most states still require testamentary trust documents, wills, and codicils to be signed by hand, often with witnesses present.
2. Family Law Documents: Papers related to adoption, divorce, or similar matters may have specific legal rules that require physical signatures.
3. Certain Real Estate Transfers: While most rental agreements and real estate contracts can be signed electronically, some documents like property title transfers or certain liens may still need a physical signature in some states.

Conclusion

In 2025, electronic signatures will continue to make work easier, reduce paperwork, and allow people to sign documents safely from anywhere. For most businesses and individuals, using electronic signatures is not just legally sound, but also a smart way to save time and make daily tasks more convenient.

The post Are Electronic Signatures Legal in the U.S.? What You Must Know in 2025 first appeared on signbulb.

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