The passage of legislation to permit remote online notarization (RON) was jogging along slowly until COVID shut down personal contact in 2020, leading to a sudden raft of legislation in states across the country, bringing the current total to 45 plus the District of Columbia.
Although real estate is primarily a local process, 46 different takes on RON regulations across the country presents problems for notaries who work across state lines or manage transactions that involve parties in different states.
Industry organizations like the American Land Title Association and the Mortgage Bankers Association have advocated for a standardized federal law to overcome some of the challenges of unique state requirements, and once again, a bipartisan bill was introduced this year to accomplish that end.
Senators Mark R. Warner (D-VA) and Kevin Cramer (R-ND) introduced bipartisan legislation titled Securing and Enabling Commerce Using Remote and Electronic (SECURE) Notarization Act in April, calling for the following provisions:
While we think primarily of the use of RON for real estate transactions, RON is used in many areas of business including financial and legal services, healthcare, human resources, and even in government services, so a standardized federal law would be a boon for many areas of commerce.
Demand for RON
Statistically, it is unknown how often RON is used in real estate transactions, but the number is growing as younger homebuyers comfortable with the use of technology in their everyday interaction with the world of commerce seek out those closing agents who can offer a streamlined process that reduces delays and allows the signers to complete their transaction in the comfort and security of their homes or offices.
While the convenience is undeniable for the signers, real estate agents are enjoying the time, travel and cost savings that come with RON, and savvy agents are increasingly looking for closing agents who can provide this service.
The big selling point for RON in the end is the amount of security it brings to the transaction. Identity verification is taken to new levels with the technology including multi-factor authentication (MFA) and knowledge-based authentication (KBA), along with government ID checks.
In addition, electronic documents are protected with tamper-evident seals, making it apparent if the document is changed after the signing is completed.
Most importantly, the entire notarization process from the video recording to the electronic journals provide an indisputable audit trail that no paper signing could ever provide, safeguarding the transaction as well as the notary and the title agency in charge of the closing.
Want to add RON to your list of services? Contact us today at Network Transaction Solutions, to learn how we can assist you with eClosings with RON, plus other specialized offerings such as municipal lien searches, HOA estoppels, mortgage payoff ordering and tracking, mobile home title services and more.
