Bridging the Gap Between Online and Traditional Real Estate Closings
In recent years, the real estate industry has embraced technology to streamline transactions. With remote online notarizations and digital closings becoming increasingly common, property transfers are happening faster and more efficiently than ever before. Innovative underwriters and forward-thinking counties have played a crucial role in this evolution by accepting electronic recordings (eRecordings) for property transactions.
But what happens when your property is in a jurisdiction that hasn’t yet implemented eRecording capabilities? Fortunately, there’s a solution that doesn’t force you back to entirely paper-based processes: “papering out.”
What Exactly Is “Papering Out”?
“Papering out” is an innovative workaround that enables digital real estate transactions even in counties that maintain traditional paper-only recording systems. This hybrid approach involves converting properly executed electronic documents into certified paper versions that meet county recording requirements.
This practical solution has been legally authorized in numerous states, creating flexibility for buyers, sellers, and real estate professionals who prefer digital transaction methods. The following states and districts have adopted laws permitting this hybrid approach:
| Alaska | Arizona | Arkansas | California |
| Colorado | Delaware | District of Columbia | Florida* |
| Georgia | Hawaii | Idaho | Illinois |
| Indiana | Iowa | Kansas | Kentucky |
| Louisiana | Maryland | Minnesota | Mississippi |
| Missouri | Montana | Nevada | New Hampshire |
| New Jersey | New Mexico | New York | North Dakota |
| Ohio | Oklahoma | Oregon | Pennsylvania |
| Tennessee | Texas | Vermont | Virginia* |
| Washington | Wisconsin | Wyoming |
State-Specific Requirements
Each state maintains its own requirements for recording paper printouts of electronic documents. Title agents must research and comply with these specific regulations. Key considerations include:
- Designated Supervisors: Who is authorized to oversee the printing of the electronic document? This may be a notary, attorney, escrow officer, or another designated individual.
- Certification Type: What form of certification must accompany the printout? This could be a “Declaration of Authenticity,” “Copy Certification,” or another state-specific format.
- Certification Content: What specific language and information must be included in the certification?
The Three-Step Process
The papering out procedure generally follows these steps:
- Supervised Printing: The appropriate authorized person (typically a notary) oversees the printing of the complete electronic document, including any electronic or remote notarizations already applied.
- Certification Attachment: The notary attaches their own certificate confirming the printout is true and accurate, following state-specific requirements.
- Submission: The paper document with the attached certification is submitted for recording.
The Future of Real Estate Transactions
As digital closing solutions become increasingly popular, county recorders need effective tools to handle various closing methods—whether in-person, hybrid, or fully online. These “papering out” laws help county recorders adapt to changing consumer and industry preferences, enabling buyers and sellers nationwide to close transactions when and how they prefer.
