Hybrid RON & Wet Ink-Signed Deed

Presented by Kay M. Creasman | VP & Virginia State Counsel

FACTS: Seller’s attorney provides a deed from the sellers, two heirs who devised the real estate from their father. The sister signed in the attorney’s office with a standard wet ink signature and notary. The brother signed remotely with the same attorney as notary but with an electronic signature and deed.

Question: Can you do this? Is this a valid deed?

Answer: Old Republic’s view is that it is not a valid deed because the wet ink signature destroys the integrity of the electronic document. Most of us that have worked in real estate settlements for a while have seen deeds that need a correction made in the deed prior to recordation, but after the deed has been signed. Normal procedure is to notify the attorney who drafted the deed as to the problem and get written authority to make the correction. Sometimes it’s a change in the legal description, the spelling of the purchaser’s name(s), a change in how the purchasers want to take title, etc.

In Central Virginia, legal descriptions are on a separate page as a Schedule A just so the legal can easily be adjusted without seller needed to sign a new deed. Sometimes this is referred to as “slip sheeting,” exchanging one page for another with permission of the parties.

However, in this situation the advice we gave was to call the Clerk’s office to determine if they would record. In this case, they did record, and no comment was made about the deed being signed this way. When this occurs, we suggest the deed be signed using RON technology to have all people sign simultaneously.

An alternative that might work would be for the deed reflect that the deed is being signed in counterparts, one of which may be electronically signed and notarized. At least that way, we know what was intended. However, I don’t know if a clerk will accept such a document for recordation. A third alternative is to have multiple deeds signed each referencing the other. This is very cumbersome and not an option if parties own as tenants by the entirety. Let us know when this happens in your office and how you successfully resolve the matter.