Are electronic signatures legal in Maryland?

What Maryland's UETA does

Maryland's version of the Uniform Electronic Transactions Act dates from 2000 (Senate Bill 3 and House Bill 18). It's Title 21 of the Commercial Law Article. The core rule is in § 21-106: a record, signature or contract can't be denied legal effect just because it's electronic, an electronic record satisfies a law that requires a writing, and an electronic signature satisfies a law that requires a signature. Evidence can't be excluded in court just because it's electronic (§ 21-112).

Maryland's extra rules on agreeing to go electronic

Like every UETA state, Maryland applies the act only when each party has agreed to do business electronically, judged from the context and their conduct (§ 21-104(b)). Maryland then goes further:

• Form contracts. A clause agreeing to do business electronically can't be buried in a standard form contract. It has to be conspicuously displayed and separately consented to, unless the agreement exists only to authorize electronic dealings (§ 21-104(b)(3)).
• Payments aren't consent. Paying a bill or registering a warranty online doesn't, on its own, show someone agreed to transact electronically (§ 21-104(b)(4)).
• Vehicle sales. Only dealers and certain other sellers may contract to sell a vehicle electronically, and the consumer must get a readable copy of every signed document and a reasonable chance to review it first (§ 21-104(b)(5)–(6)).

A party who agreed once can still refuse the next transaction electronically, and that right can't be waived (§ 21-104(c)).

Maryland keeps ESIGN's consumer protections

The federal ESIGN Act lets states that adopt UETA replace parts of it. Maryland chose not to for consumer notices: § 21-102(f) says its act doesn't modify, limit or supersede ESIGN where a law requires information to be given to a consumer in writing. So when you send a Maryland consumer a required written notice electronically, ESIGN's consent and disclosure steps apply (15 U.S.C. § 7001(c)). Our plain-English guide explains them.

What's excluded in Maryland

Maryland's exclusion list is longer than the uniform act's, because it writes several of ESIGN's exceptions into state law (§ 21-102(b)–(c)):

• Wills, codicils and testamentary trusts, and adoption, divorce and other family law matters.
• The Maryland UCC, except §§ 1-107 and 1-206 and Titles 2 and 2A, and the Uniform Computer Information Transactions Act.
• Notices of utility shutoff; default, foreclosure, eviction or right to cure on a primary residence; health or life insurance cancellation; and product recalls that risk health or safety.
• Court orders, notices and official court documents (except as the Maryland Rules allow), and documents that must travel with hazardous materials.

Remote notarization

A Maryland notary may notarize for a remotely located signer using live audio-video technology, with identity checks and a recording of the act (State Government Article § 18-214). See remote online notarization. SignMaster doesn't notarize documents.

Practical notes for Maryland businesses

• Make e-sign consent its own step. If you use a form contract, keep the agreement to sign electronically visible and separately accepted.
• Give a copy they can keep. A record the recipient can't print or save isn't enforceable against them (§ 21-107(c)).
• Retain the final version. An electronic record satisfies a retention rule if it accurately reflects the final document and stays accessible (§ 21-111).
• Keep proof of who signed. Section 21-108 lets you prove a signature was someone's act in any way, the security procedure included.

Because § 21-112 keeps electronic evidence from being excluded just for being electronic, the record you keep matters. In SignMaster, every signer agrees to sign electronically before signing, and the consent is stored with the disclosure version they saw. The completed PDF, which signers can download, ends with a certificate of completion that dates and times each event.