The input gate of the HT12E is pulled high by an internal resistor (or an equivalent thereof).
Thus your signal source has to be capable of *sinking* current (ie pulling the input low) rather than *sourcing* current (ie pulling the input high).
I expect that your signal generator is only capable of acting as a signal source and cannot actively pull the output low. Stick a one transistor common emitter buffer after it, or equivalent, and I suspect that all will be well.