Property deals via email - does it make sense?

Its been a while since 1998 when the Electronic Transactions Act was passed by Singapore's Parliament. I always expected that the ETA will change how business will be done but I had not expected that it would take so long and played so little in actual cases.

The Straits Times reported on 2nd April and again on 10th April of the High Court decision of a dispute arising between two parties that negotiated a property agreement via email. Unforunately, the case was only reported in ST which has since became paid access online only (hence no link nor details available here). Anyway, ST reported the judge had decided that email can now be used to record property transactions. (NOTE: I will revisit this case when I get a chance to read the case report when it comes out)

My immediate reaction to the case was - was it the right decision for the economy and business?

While I agree that it is unavoidable that the future is in electronic communications technology like email (and other similar types including SMS), this case may end up being turned over on appeal if the lawyers woke up and realised that in the ETA section 4 provided that provisions of the electronic contracts and electronic signatures and records will not apply to property transactions. This section does not specifically say that one cannot make a property contract via email/electronically BUT rather that such agreements cannot rely on the ETA to enforce the transaction. What was the intent of parliament here? (I will leave this discussion until another case tests it again.)

I wonder though whether it is the right decision considering why common law required writing for property transactions. Fraud is always a concern and the bare technology of email is awfully risky. Its even implied that SMS may even be recognised for property deals.

So, I wonder will this case be tested? Yes and I am quite sure very soon. I think the situation needs to be rescued. A more balanced situation would be for Parliament to review the provisions and allow property transactions only via secured electronic transactions. (secured = with the use of digital signature or secured electronic signature).

The immediate impact of this case is that property transactions costs will now go up as property businesses are reacting to the new law and in all probability use security ware to prevent fraud.