Uniform Electronic Transactions Act

What is the Uniform Electronic Transactions Act (and what does have to do with HOA software)?

The Uniform Electronic Transactions Act (UETA) was established by the Uniform Law Commission in 1999 to give electronic contracts and signatures the same legal validity as paper documents. This allows homeowners associations (HOAs) to provide homeowner policies, violation notices, and third-party vendor contracts to the applicable recipients for electronic review and signature. HOA software offers secure document storage so all signed contracts stay organized and accessible to board members and residents. Software also makes it easy for HOAs to send electronic documents via email or resident portals. This speeds the review and signature process and ensures all parties retain a copy of important contracts. 

Why is the Uniform Electronic Transactions Act important?

Homeowners associations handle a large volume of legal documents. In doing so, they have a responsibility to maintain compliance and ensure an error-free process. UETA makes this possible by providing the structure that allows HOAs to manage legally binding documents through their digital systems. 

Electronic document management saves time by eliminating the need for the manual delivery of paper documents. For example, if community bylaws change, the HOA board can send electronic copies to residents for their review and e-signature. A digital process also makes it easy to track which residents have or haven’t signed legal documents. 

Some states require homeowners associations to offer digital documentation. UETA protects the legality of e-signatures so HOAs avoid resident disputes or compliance violations.

How can you use “Uniform Electronic Transactions Act” in a sentence?

The Uniform Electronic Transactions Act made it possible for the HOA board to switch to a paperless system.