Remote Online Notarization
Traditionally, a notary public verifies the authenticity of important documents in real estate transactions, among other things. A notary public is commissioned by the state to witness and legitimize the documents with their notary seal. Remote Online Notarization is changing the game.
Since the passing of the Remote Online Notarial Act, many states and real estate companies have conveniently used a Remote Online Notarization service. This article will walk you through everything you need to know about Remote Online Notarization.
What is Remote Online Notarization?
Remote Online Notarization (RON), as the name suggests, means a notary service that notarizes documents remotely. An online notary who can work from home uses a combination of audio, video technology tools, and conferencing software to legalize a document, and verify the identity of the person signing the document.
This is a crucial process in many banking transactions, business deals, and real estate eClosings (electronic closings of mortgage loan documents). RON started a new level of efficiency in improving bureaucratic processing. Electronic Notary cuts the length of time involved in processing documents and lessens risks involved in in-person notarizations.
Here’s a sample flow of Remote Online Notarization:
The process of e Notary starts when the documents are uploaded to the platform. This platform is being used by both parties.
The signer is then notified about the document which they can access through the platform. The document and identity of the signer is then authenticated before the notary is notified, so both notary and signer can join a two-way audio-video conference.
The notary electronically notarizes the documents after the signer affixes their signature on the document.
Copies of the notarized document is sent out to the parties involved and a copy of the audio-video conference and authentication data is stored in an electronic journal of the notary for documentation.
Benefits of Remote Online Notarization
When it comes to real estate transactions, here are some benefits you should expect.
Industry Benefits:
- Migrating paper closings to online closings will allow more robust tracking with customer files for real estate closings
- Errors will be discovered quicker on loan documents, allowing more time to correct them which benefits everyone
- Online closings will provide more sophisticated ways to verify a consumers identity such as knowledge based authentication, instead of solely relying on a drivers license.
- RON will completely streamline a currently disconnected process for industry professionals such as the title company, lender, attorneys, customers/signers, and notary signing agents.
- Overall start to finish turn times on say purchases or refinances should be quicker and more efficient for everyone, lowering costs in the long run
Reducing fraud should be a significant win for the industry overall. Built into the online closing platforms are higher level customer authentication that simply does not happen with “in person” closings. Technological advancements such as the closing platform requiring questions that are knowledge based and only something the true consumer can answer, is a step into the future from traditional notarizations.
With in person traditional closings, if there is any attempted fraud or coercion, the notary is required to physically leave where the closing is being taken place. With online closings though, they are just a “click away” from doing the same exact thing. Technology makes it easier and safer with this regard.
Errors unfortunately do happen on loan signings for real estate transactions. With online closings, it should allow for errors to be discovered earlier in the process by the consumer, so there are fewer last minute changes. This is a nice built in feature, and if you’ve ever been part of a real estate transaction, you understand how things can come up last minute.
Signer or Customer Benefits:
- Signers are no longer required to meet “in person” at their home, work, realtors office, or title company
- Enjoy being able to review the final documents for your transaction sooner, so there are no surprises
- Closings should be quicker. Gone are the days of 90-120 minute loan closings
States that Allow Remote Online Notarization
As of January 2020, there are 21 states in the United States that have fully adapted to RON. Florida is the latest state to allow online Notary after Governor Ron DeSantis signed the House Bill 409, with Virginia being the first.
As of November 2020, there are 45 states that allow RON or Remote Online Notarization through: Official law, temporary law, temporary executive order
The full list of states that allow electronic Notary are as follows:
- Alabama
- Alaska
- Arizona
- Arkansas
- Colorado
- Connecticut
- Delaware
- Florida
- Georgia
- Hawaii
- Idaho
- Illinois
- Indiana
- Iowa
- Kentucky
- Louisiana
- Maine
- Maryland
- Massachusetts
- Michigan
- Minnesota
- Mississippi
- Montana
- Nebraska
- Nevada
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Dakota
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- Rhode Island
- South Dakota
- Tennessee
- Texas
- Utah
- Vermont
- Virginia
- Washington
- West Virginia
- Wisconsin
- Wyoming
Remote Online Notarization States which has not been authorized yet (as of this posting):
- California
- Kansas
- Missouri
- North Carolina
- South Carolina (active RON bill)
- Puerto Rico
How to Become an Online Notary?
Every state has its own guidelines for electronic notarization. You’ll need to check with your current state for the specifics. Generally, this is the process on how to become a Notary online.
- You need to be a commissioned traditional Notary public. Take note of your notary identification number, your date of birth, and social security number.
- You would need to obtain a digital certificate from a third-party provider that uses Public Key Infrastructure (PKI) technology, compliant to the state guidelines. The digital certificate should contain your electronic seal which follows the standard imposed by the state your Notary public is based.
- You would need an electronic storage for all the digital data you will acquire in your practice. This storage should be able to accommodate recordings and backups of the audio-video conferences when notarizing remotely.
- Lastly, have a third party to perform identity and credential analysis to verify the identification of the person whom you are notarizing.
It is also note-worthy that you would need a valid email address to which your notary application number and application response is sent. The requirements above are important on becoming a Notary online for all sorts of businesses.
What is needed to do Remote Online Notarization as a Signing Agent?
A signing agent’s role is to procure signatures in documents and ensures it is notarized to legitimize the documents. You will witness the signing of the documents and ensure that no dates or details are missing before it is notarized. You will have to identify the documents during the Remote Online Notarization.
The role of a notary signing agent is important in eClosings, but should not be confused as closing agents.
It is the responsibility of the signing agent to make sure that the loan document is properly executed. You cannot, however, give legal advice, explain the terms on the document, or prepare the document by yourself. That said, a signing agent needs to be impartial to both parties.
Become an Online Notary, and Online Notary Signing Agent
Are you ready to start your journey on how to become an online Notary signing agent? These are the first steps you need to take.
- You would need to use an Electronic Platform or also called a Remote Notarization Software where your clients and their signers are supposed to submit documents. This is the same platform that will store the recordings of the notarization process. This streamlines the notary process for eClosing in real estate businesses.
- Get your Digital Certificate from the platform. You will need this to be authorized e notary. Why go through the hard way when RON platforms can help make it easier for you? Some platforms even offer Remote Online Notarization training to guide you through the works.
- On top of your digital certificate, you also need your Electronic Notary Stamp. This is another requirement you have to present during your application process. Check the standard electronic notary stamp and the details that need to be present on it.
What Remote Online Notarization Software Platforms are out there for real estate closings?
It was the Mortgage Bankers Association (MBA) and the American Land Title Association (ALTA) that paved the way for Remote Online Notarization. The convenience in eClosing is incomparable when it comes to customer satisfaction.
Remote Online Notarizations such as Pavaso and Notarize has made real estate closings more convenient. These platforms offer 100% money-back guarantee at an affordable price, all in the convenience of the parties involved. In fact, Pavaso allows real estate sellers and buyers to close the deal entirely digitally.
Remote Online Notarization Frequently Asked Questions
- What are the upsides of RON for real estate closings?
- As a Notary Signing Agent, it will be easier to do loan closings every day, with no travel or sitting in traffic. Both client and agent save a huge amount of time and money.
- As a Signing Agent, you’ll be able to increase revenues if you can do more closings everyday.
- There is a chance you’ll be able to hire people who will work for you as a Signing Agent
- What are the downsides of RON for real estate closings?
- Too many independent departments will still need to migrate over to eClosings and switch to digital processing. These are Lenders, Title Companies, Signing Service Companies, Notary Signing Agents, Attorneys and signers themselves. They do not move in sync, and this might take a long time to get them to work together and go digital.
- Some States have a limited number of “approved vendors” list you can work with
- The fees for different platforms vary
- The fees paid to the Signing Agent for closings are set differently
- Not sure of how long the closings will actually take.
How can Notary Signing Agent Blueprint help me with RON?
Notary Signing Agent Blueprint is America’s Top Online Training & Certification for Notary Signing Agents. We have several expert Signing Agent training programs, combined with a Mentorship program that is designed to help you make more money with your Notary business.
From start to finish, we show you everything you need to know — from becoming a Notary, to becoming an Online Notary, to becoming a Signing Agent, and any and all credentials do to loan closings in your state. The program is run by Director Jon Snedeker who has completed almost 10,000 loan signings in over a decade, and was named “One of the Best Notary Signing Agents in America”.
Our national program has included all information with RON and Remote Online Notarizations so you can make this a reality as long as your state allows it. We’ll show you what tools you need, how to become an Notary Online, and even show you a sample online eClosing too!
Contact us to learn more.
Free Notary Signing Agent Resources from Notary Signing Agent Blueprint
Don’t miss out on our entirely free webinar and Signing Agent training replay
Join America’s #1 Signing Agent Facebook Group now
Subscribe to our YouTube page.
What equipment is needed as a Signing Agent?
6 Critical Mistakes to avoid as a Signing Agent PDF
To your success…
TeamJon@NSABlueprint.com
#TeamBlueprint
Jon Snedeker
Founder & Director
Notary Signing Agent Blueprint