Remote online notarization (RON) is here to stay. It’s also increasingly a selling point for title firms, whether they’re partnering with someone else to do it or using in-house capabilities.
But not all RON transactions are created the same! A choppy RON closing could be your last with your client.
To ensure the use of RON is successfully implemented in your transactions, there are a few simple qualifying steps you can take so that you don’t get hung up at the closing table.
Review the legal requirements
If you are already a consistent user of RON, you are probably well aware of your state requirements. If you are new to the practice, make sure you understand what is required, especially ensuring your notary is certified to use RON and that you are using a RON provider approved in your state.
If you are conducting an out-of-state closing, it is particularly important that you do your due diligence on the requirements within that state.
Check with the lender
Some lenders do not allow RON closings in certain situations, even if it is perfectly legal in the state. Often lenders will decide to require in-person signings due to security concerns or other factors. In addition, the lender may require some types of documents within the transaction to be signed in person or may have similar requirements around specific types of mortgages.
Even if you have conducted RON closings for a particular lender in the past, always double-check to make sure the current transaction meets their requirements.
Discuss with your client
While a title agent will typically check with the clients to determine their preferences when it comes to signing the final documents, the requirements for RON are unique and these must be verified with the client prior to closing.
For instance, make sure you know where the signer will be located as some lenders will not approve RON for foreign buyers or buyers who are in the military and stationed out of the country.
Verify what identification the signer will be using and make sure this form will be acceptable to the notary and to the RON provider. Also, some states require a thumbprint or other biometric identification, and you will need to verify with the signer that they are comfortable with these practices.
If notary payments must be made at the time of the signing, ensure the home buyer is prepared to make those payments in the form required.
RON offers tremendous benefits in the real estate closing process. It saves time, provides convenience and greater accessibility to your clients, and includes enhanced security.
Most significantly, RON offers more effective and reliable record keeping, including a record of the documents in the closing package, a video recording of the entire process, and digital record of the signer’s identification process.
NTS has the resources to help you grow your agency, by taking on specialized tasks that help you focus on your greatest strengths. Contact us today to learn about how we can assist you with eClosings with RON, municipal lien searches, HOA estoppels, mortgage payoff ordering and tracking, mobile home title services and more.
