What Are E-Signatures? A Plain-English Guide
Electronic signatures explained simply — how they work, their legal validity, and why they've replaced pen-and-paper for most agreements.
If you’ve ever signed a document by tapping a button, drawing on a screen, or typing your name into a box — you’ve used an electronic signature. But are they actually legal? And when should you use one versus a wet-ink signature?
The Short Answer
Yes, e-signatures are legally binding in all 50 U.S. states. Two federal and state-level laws make this possible:
- The ESIGN Act (2000): A federal law that gives electronic signatures the same legal standing as handwritten ones for most transactions.
- The Uniform Electronic Transactions Act (UETA): Adopted by 49 states (plus D.C.), providing the state-level framework.
This means your roommate agreement, lease, or sublease signed electronically is just as enforceable as one signed with a pen.
How E-Signatures Work
When you e-sign a document on a platform like pen.sh, several things happen behind the scenes:
- Identity verification: The system records who signed, when, and from what device/IP address.
- Tamper evidence: The signed document is sealed so any post-signing changes are detectable.
- Audit trail: A complete log of every action — who opened the document, when they signed, and from where.
This audit trail is what gives e-signatures their legal muscle. It’s actually more evidence than you’d get with a pen-and-paper signature.
When to Use E-Signatures
E-signatures are valid for nearly all everyday agreements:
- Roommate agreements
- Residential leases and subleases
- NDAs and confidentiality agreements
- Freelance contracts
- Lease renewals and addendums
When You Still Need Wet Ink
A few document types still require traditional signatures:
- Wills and testamentary trusts
- Court orders and notices
- Some real estate deeds (varies by state)
- Documents requiring notarization (though e-notarization is expanding)
For the vast majority of rental and roommate agreements, e-signatures are the modern standard.
E-Signatures vs. DocuSign
DocuSign popularized e-signatures for enterprises, but their pricing starts at $15–40+/month — overkill for individuals who need to sign one or two documents. Tools like pen.sh offer the same legal validity at a fraction of the cost, with per-document pricing instead of monthly subscriptions.
Create your first agreement on pen.sh for free — no credit card required.
pen.sh is not a law firm. For complex legal situations, consult a licensed attorney in your state.