IF we send the info notice and the notice of right to lien via docusign is it valid?
1 reply
Jan 30, 2020
The question of whether an electronically signed lien is valid is different than the question of whether preliminary notices may be electronically signed.
First, in Oregon, parties contract directly with the property owner only have preliminary notice requirements on residential projects. When working on a residential project exceeding $2,000, general contractors must deliver an Information Notice to Owner at the time of signing the contract with the owner, or within 5 days of the date of when the contractor knows that the contract will exceed $2000.
Other parties must (on residential projects) and should (on commercial projects) provide the property owner with a Notice of Right to Lien.
Both of these documents may be electronically signed. United States’ law is clear in the acceptance of electronic signatures as signatures as valid as “pen and ink” signatures. Both the Electronic Signatures in Global and International Commerce Act (the “E-Sign Act”) and The Uniform Electronic Transactions Act (UETA) specifically hold that electronic signatures are valid.
The question of electronically signing the lien document is a bit more complex. Oregon requires that the lien be verified by the oath of the person filing or some other person with knowledge of the facts (subject to penalties for false swearing). Since this requires notarization, the lien could only be signed electronically if electronic notarization was also used - and the ability to electronically notarize documents is currently exceptionally limited (notaries in Virginia may e-notarize).