With remote real estate notary closings becoming the norm, you need to have a firm understanding of the process. It will allow you to guide your clients with signing closing title and escrow documents remotely. Gone are the days when there was a need to perform closings in a room packed full of people. When the pandemic broke out, digital transformation offered the real estate industry a better solution.
According to a survey it was found that there has been an increase in title and settlement companies that provide digital closings. Remote online notarizations grew by up to 547% for real estate transactions. It has affected the real estate process, especially closings. Therefore, remote closings make it easier for people to purchase properties.
What Is A Remote Real Estate Closing?
A remote real estate closing involves the same process as traditional closings. The only difference that has been observed is that verification is performed digitally. Remote real estate notary closings facilitate the following.
- Signing documents remotely
- Notarization of signatures virtually
- Verification of identities electronically
How Do Real Estate E-Closings/Remote Online Closings Work?
One of the most important things that both buyers and sellers need to understand is that not every digital closing method is considered a remote closing. If people have to complete the process in person despite the use of electronic documentation and signatures, the process would not be deemed remote. The following three models are commonly used.
- In-Person Electronic Notarization: It requires all the parties to be present even though they would have to sign the documents electronically. The process would simply allow digital storage and reduce paper waste.
- Hybrid Electronic Closing: The parties would sign some of the documents online. However, they would still have to meet the notary in person for the process to be completed.
- Remote Online Notarization: Video conferencing and digital documentation are used by the parties to perform remote notarization. The entire process is completed without having to meet in person.
Pros and Cons of Real Estate E-Closings/Remote Online Closings
The best thing about remote online closings is that they provide amazing convenience for you and your clients. Even for title and escrow notarization, it is a big relief. But, indeed, there are some limitations.
Advantages
- Convenient and Efficient: Remote online notarization does not require any travel or mailing
- More Time for Reviewing Closing Documents: Remote closing documents would be provided to the parties in advance instead of at the time of closing. This would ensure that review and research are performed before signing the documents.
- ID Proofing: using dynamic KBA and bank-grade ID forensic analysis, you can be more sure that the signer is who they say they are
Disadvantages
- Legality Varies Based on State: While most states are passing legislation to allow for eClosing, different state laws need to be reviewed on a case-to-case basis.
What to Expect From a Remote Real Estate Notary Closing?
After uploading the documents package, BlueNotary online notarization platform staff will review and follow any instructions provided for preparing the closing. After all tags are set, the live session can begin in which the signer will meet the notary in a live session to digitally sign and initial all the documents. During the live session, you’ll be able to call in other parties like realtors or loan officers.
