Arizona first to adopt new uniform act to allow eMortgage filing.

ARIZONA GOV. JANET NAPOLITANO (D) signed a new law that will permit county clerks and recorders throughout the state to accept and store real property records, including mortgages, in electronic form.

Enactment of S.B. 1354, the Uniform Real Property Electronic Recording Act (URPERA), makes Arizona the first state in the nation to allow electronic filing of real estate records.

The law, which goes into effect on Jan. 1, 2006, was drafted and approved by the National Conference of Commissioners on Uniform State Laws (NCCUSL), Chicago.

URPERA's intent is to provide a uniform and consistent framework for bringing recording of real estate records into the modern electronic era. The act authorizes--but does not require--the receipt, recording and retrieval of documents and information in electronic form.

"The objective of the Uniform Real Property Electronic Recording Act is cheaper and faster real estate sales," said John McCabe, NCCUSL's legislative director.

In the past few years, many local real estate recorders have developed an interest in converting their traditional paper-based land-recording systems to a more convenient electronic form. Some individuals have set up digital recorders, although often without much clear legal authority to do so.

The few statutes that do exist are mostly piecemeal, dealing with isolated issues rather than taking a comprehensive view of the necessary legal developments, according to NCCUSL.

With the adoption of the Uniform Electronic Transactions Act (UETA) and the federal enactment of the Electronic Signatures in Global and National Commerce Act (E-SIGN), electronic signatures memorializing land sales contracts are now generally enforceable.

Many state laws, however, still require recorded real estate documents to be submitted on paper or in writing.

Arizona is the first state to adopt URPERA, but seven other states--California, Connecticut, Delaware, New Mexico, North Carolina, Texas and Virginia--as well as the District of Columbia have introduced URPERA during the current legislative session, said McCabe.

Of those states, Delaware and perhaps the District of Columbia have a "good shot" at passing URPERA before lawmakers adjourn. With at least Arizona in the "win" column, McCabe said he is hopeful it will help build momentum as NCCUSL works to get the measure passed in big, bellwether states such as California or Texas.