With remote 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 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. In fact, 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 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. This means that you will find them to be an obvious choice. But, you have to understand that they do have some limitations.
- Physically Safe: Due to the presence of prevention protocols for in-person meetings, remote online notarization offers a physically safe solution.
- Convenient and Efficient: Remote online notarization does not require any travel. You simply have to pick a time slot for the notarization. That’s about it.
- 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.
- Acceptance Varies Based on State: While most states have approved, there are still some lagging behind the inevitability of online closings.
What to Expect From a Remote Real Estate Closing?
As remote closings offer amazing convenience, they have taken over the entire industry. This is why buyers and sellers need to know how to navigate the experience. The future of closing online is now.
Identify the Documents That Require Notarization
Generally, the following documents would have to get notarized.
- Promissory Note
- Notice of Right to Rescind or Right to Cancel
- Mortgage, Security Instrument, or Deed of Trust
Use Blue Notary for Remote Closing
Blue Notary provides an online closing platform which simplifies the entire notarization process. It offers enhanced security and a smooth remote closing. With Blue Notary, signers get to use just about any device for notarizing their documents. You can schedule a demo with us today to learn more about how we can make your closings a whole lot easier for your clients.