Electronic signatures on purchase contracts in New York are expressly prohibited by statute. The applicable statute is found in the Technology Law. Section 307(3) of the Technology Law states: “This article shall not apply …To any conveyance or other instrument recordable under Article Nine of the real property law.”

Under Article 9 section 294 of the Real Property Law, “an executory contract for the sale, purchase or exchange of real property, or an instrument canceling such a contract, or an instrument containing a power to convey real property, as the agent or attorney for the owner of the property,  acknowledged or proved, and certified, in the manner to entitle a conveyance to be recorded, may be recorded in the office of the recording officer of any county in which any of the real property to which it relates is situated, and such recording officer shall, upon the request of any party, on tender of the lawful fees therefore, record the same in his said office.”

Therefore, purchase contracts are recordable instruments under Article 9, section 294 of the Real Property Law. As a result, Section 307(3) of the Technology Law applies to purchase contracts. There is also an opinion from the attorney general that the Federal E-SIGN Act does not apply to purchase contracts.

In the opinion, the attorney general addresses the issue as to whether the Federal E-SIGN Act preempts Article 9 §294 of the Real Property Law. In its opinion, the attorney general’s office states: “It is our view, shared by commentators and the federal Office of Management and Budget alike, that E-SIGN probably does not preempt state recording acts like Article 9 of the Real Property Law. We believe that county recording officers in New York, therefore, are not obligated by E-SIGN to accept any filing for recordation that contains only an electronic signature.” A copy of the opinion is available on NYSAR.com.