Humber/Ontario Real Estate Course 4 Exam Practice

Salesperson Hannin is preparing an agreement of purchase and sale. The buyer and seller are contemplating affixing electronic signatures to the document. Based on this situation, Salesperson Hannin?

1. Is obligated to inform both parties that electronic signatures are permitted on representation agreements, but not agreements of purchase and sale.

2. Must use technology that is tamper-proof and is capable of authentication.

3. Must use electronic signatures if either the buyer or the seller require their use.

4. Should insist on implied consent from both parties to avoid any future disputes.

The correct answer is: Must use technology that is tamper-proof and is capable of authentication.

The correct choice highlights the requirement that Salesperson Hannin must utilize technology that ensures the integrity of electronic signatures through tamper-proof capabilities and authentication methods. This is critical because electronic signatures, while legally valid and widely accepted, must adhere to specific standards to ensure that they are secure and trustworthy. If the technology is not robust enough to prevent tampering, it could lead to disputes about the validity of the signatures or the terms of the agreement. In this context, using tamper-proof technology provides confidence to both parties in the authenticity of the transaction, reducing the possibility of fraud or misuse. Proper authentication methods further affirm that the signatures are genuinely affixed by the intended parties. This adherence to security protocols is essential in real estate transactions, where large sums of money and significant legal obligations are involved. Different options presented may suggest other considerations, such as the claim that electronic signatures are not permitted in agreements of purchase and sale, which is incorrect since they are indeed valid. Similarly, the idea that electronic signatures must be used if requested by one party does not acknowledge the necessity for both sides to consent to that method. Lastly, the option regarding implied consent, while relevant in terms of general consent for the use of electronic signatures, does not specifically address the need for