Digital transformation in the real estate sector: remote work and electronic signatures

The real estate sector, traditionally associated with in-person interactions, has undergone a radical transformation in recent years. The widespread adoption of digital technologies has profoundly altered the way real estate transactions are conducted.

How real estate services have adapted for remote work 

T

he shift to remote work in the real estate sector has involved a series of significant changes, essential for meeting new market demands and providing a more efficient and flexible service. 

• Virtual tours: Technology has enabled virtual property tours, allowing buyers or tenants to view a property without needing to visit in person. 

• Property management tools: The use of specialised software has streamlined property management, enabling estate agents to handle tasks such as lead management, scheduling viewings, and generating reports remotely. 

• Digital communication: Communication with clients has increased through digital channels such as email, video calls, and instant messaging platforms. 

• Digital marketing: Estate agencies have strengthened their online presence through websites, social media, and specialised platforms to attract new clients. 

Electronic signatures supporting the real estate industry 

Alongside the virtualisation of services, electronic signatures have found a fertile ground in which to grow rapidly, becoming a highly useful resource in various stages of real estate transactions. For example: 

Initial stages of the transaction 

• Reservation agreement: This initial document ensures the buyer has the option to purchase the property and provides the seller with the assurance to cease marketing it. 

• Penitential deposit agreement: This serves as a guarantee for the formalisation of the sale and sets out penalties in the event of non-compliance. 

Finalisation of the sale 

• Private sale contract: This contract outlines the conditions of the sale and is a precursor to the public deed. 

Rentals 

• Signing the rental agreement: Whether for residential properties or commercial premises, electronic signatures streamline this crucial process. 

• Signing the power of attorney: Facilitates the management of utilities in the name of the new tenant. 

• Signing authorisation to request references: Allows for the quick and efficient verification of the tenant’s financial standing. 

• Signing the advertisement contract: For landlords using property platforms. 

• Signing payment authorisation (SEPA mandate): Simplifies the management of rent payments by authorising a third party to make direct debits from the tenant’s bank account. 

• Signing the tenant’s home insurance: Ensures protection for both the tenant and the property. 

Other transactions  

• Signing authorisations and consents: For various matters related to the property, such as renovations or changes of ownership. 

Electronic signatures do more than speed up processes — they bring traceability, strengthen legal validity, and reduce friction between all parties.

Discover how to optimize their use in real estate operations with TrustCloud

Legal and regulatory considerations of electronic signatures in the real estate sector 

The implementation of electronic signatures in the real estate sector has brought about fundamental legal and regulatory considerations to ensure the validity and security of transactions. 

While the general principles of electronic signatures apply across various domains, the real estate sector has specific nuances that require special attention. A clear example is the public deed, a crucial document in property transfers. Although electronic signatures have simplified many other real estate processes, the public deed generally still requires an in-person signature before a notary. However, some countries are exploring the possibility of incorporating electronic signatures into this procedure, which could further revolutionise the sector. 

Legislation regarding electronic signatures can vary significantly from one country to another, and even between different regions within the same country. Therefore, it is essential to be familiar with the specific regulations applicable to where the real estate transaction will take place, including details related to transfer taxes, contract cancellation options, notarial presence, and so on. 

One key consideration, which is increasingly gaining prominence, is the custody of assets generated during digital transactions. This is a delicate issue in significant operations like those in real estate, where it is crucial to have a system that ensures the integrity and preservation of electronic signatures over time. 

Adopting electronic signatures in the real estate sector offers benefits beyond the convenience and efficiency they bring to processes. By generating an immutable record of the signature, electronic signatures enhance the legal security of transactions, minimising the risk of disputes and fraud, provided they are supported by robust, rigorous, and secure providers. 

The traceability of electronic signatures provides greater transparency and trust in real estate processes. Moreover, in the event of litigation, the existence of an electronic signature can expedite judicial proceedings by facilitating access to evidence and reducing the burden of proof, contributing to a faster resolution of conflicts.  

The digital real estate industry in the near future  

The emergence of technologies such as virtual and augmented reality will allow potential buyers to undertake immersive virtual tours of properties even before setting foot in them. Artificial intelligence applied to personalising searches, analysing data to offer properties aligned with each user’s needs and preferences, or the rise of new business models based on the sharing economy, where digital platforms facilitate short-term property rentals and more efficient management of property owner communities, are likely to become established in the near future and could revolutionise the real estate business. 

The digitalisation of the real estate sector continues to break barriers, and it is likely that we will see even deeper changes in the future. Remote or hybrid work and users becoming increasingly accustomed to 100% online processes, such as electronic signatures, are key elements of an unstoppable transformation.