Can One Sign An Offer To Purchase A Property Electronically?
Validity of Electronically Signed Property Agreements of Sale in South Africa
In South Africa, the validity of electronic signatures is governed by the Electronic Communications and Transactions Act 25 of 2002 (ECTA). However, Section 4 of ECTA, which defines the scope of the Act, explicitly excludes agreements for the alienation of immovable property as stipulated in the Alienation of Land Act 68 of 1981 (AoLA).
Specifically, Section 4(4) of ECTA confirms this exclusion. Furthermore, Section 2(1) of the AoLA mandates that any sale of land must be embodied in a written deed of alienation signed by all parties to be valid.
Court Case
This legal position was affirmed by the Johannesburg High Court in Aarifah Security Services CC v Jakoita Properties (Pty) Ltd and others 2020 JOL 48794 (GJ), where the court stated in paragraph 63:
"A 'normal' signature, such as one finds at the foot of an email, whilst it might suffice for a formality requiring a signature laid down in contract, cannot suffice if the signature is required by statute.
More fundamentally, however, sections 4(3) and 4(4) read with Schedules 1 and 2 of ECTA make it clear that its provisions can in any event not be employed to validate Deeds of Sale under the Alienation of Land Act."
Conclusion
Therefore, an offer to purchase immovable property must be in writing and signed manually by all sellers and purchasers. Electronic signatures are not legally sufficient for these agreements.
Failure to comply with these requirements, or other statutory formalities, renders the agreement of sale invalid and unenforceable.