Electronic signature

How BC law treats it

The Electronic Transactions Act, SBC 2001, c 10 defines an electronic signature in s. 1 broadly as information in electronic form that a person has created or adopted in order to sign a record and that is in, attached to or associated with the record. There is no requirement that the signature be unique, encrypted or created on a particular platform. Those stricter "secure electronic signature" tests come from federal rules under Part 2 of PIPEDA for certain federal documents, not from BC law. Where a BC law requires a signature, an electronic signature satisfies the requirement, subject to any specific statute and to the Act's exclusions in s. 2(4), which cover wills, trusts created by wills, powers of attorney concerning an individual's financial affairs or personal care, and documents that create or transfer interests in land and require registration. Wills follow the Wills, Estates and Succession Act, SBC 2009, c 13, which now has its own rules for electronic wills. Land title documents are filed electronically by a lawyer or notary using a Juricert digital certificate under Part 10.1 of the Land Title Act, RSBC 1996, c 250, and the parties' execution of transfers and mortgages must still meet that Act's execution and witnessing requirements. In practice, the legal question is usually proof. If a party denies signing, the court looks at evidence of identity and intent, such as the platform's audit trail, email addresses, authentication steps and conduct after signing. Corporate documents, such as directors' consent resolutions under the Business Corporations Act, SBC 2002, c 57 (BCBCA), are commonly signed electronically if the articles permit or do not prohibit it.

What it means for your business

Electronic signatures let BC businesses close deals, onboard customers and pass resolutions without paper. The risk is evidence. For guarantees, share transfers, loan documents and other high value instruments, use a platform with identity verification and a full audit trail, because a signer who later denies signing will test the evidence. Real estate and estate documents need their own procedures and cannot simply be clicked through. Example: A Vancouver lender has a borrower's director sign a personal guarantee through an e-signing platform with two-factor authentication. When the director later denies signing, the audit trail showing his email, phone verification and IP address supports enforcement.

Risks and common mistakes

Believing BC law requires an electronic signature to be unique, encrypted or certified to be valid. Using a simple typed name for a high value guarantee without any identity verification or audit trail. Assuming a party can e-sign a land title transfer the same way it e-signs a supply contract. Failing to check whether the company's articles or the contract itself restrict electronic execution. Not saving the signing certificate and audit trail with the executed document.