Remote Online Real Estate Closings - Title Companies Prepare for Change.
Remote online real estate closings enter 2020 and title companies prepare for one of the largest changes in this business since TRID. We all remember having to sit at the closing table signing our life away on what seemed like an endless amount of real estate closing documents. Effective January 1st, 2020, Florida following many other states has enacted online notarization giving the title industry the ability to close real estate transactions completely online.
Remote Online Real Estate Closings - The Future
While there are some advantages and disadvantages, this will likely make the home loan closing process a lot easier. In cases where a home loan is utilized to purchase a home, the lender will likely send all of the home buyers documents in advance of the closing to ensure you have had plenty of time to review them. Once the real estate closing is ready to happen, title companies will now use online platforms such as Pavaso to initiate an online conference call to preform the notarial act and ensure the documents are executed properly. This is a 100% completely online process and requires no long drives to the title insurance company, sitting at large conference tables, or any other not so exciting part of buying a home.
A few things you will need for remote online notarization:
- A webcam - With today's technology push, nearly everyone has a smartphone that contains a camera which will often provide what is needed.
- Identification - Online notaries are required to verify identity not only online, but by utilizing other methods to validate your identity.
- Witness - Since you are no longer sitting at the title company where you can use an employee of the company to witness your signature, you will now have to provide a witness. In most cases, the witness should be a friend, neighbor, or co-worker since using a family may or may not be allowed depending on circumstances.
- Printer (optional) - If you would like a paper copy of your signed and notarized documents, you will need to print them. Technology driven companies like Scarab Title, will make your documents available online but it will be you choice to print them.
RON Closings are the Future
We have been awaiting this exciting industry change. Mortgage lenders are increasingly pushing title companies to be digital and as online real estate closings become more popular, we feel it will be the standard in the upcoming years. This has created many challenges for licensed title agents who have resisted technology or are not tech savvy as rumors are circulating that FNMA, the largest guarantor of mortgages, will require digital real estate closings in the near future. This will reduce the amount of paper circulating back and forth between title companies and mortgage lenders creating an eco-friendly, solution that will speed up the closing process substantially.
At the end of the day, we feel this is a huge benefit to the real estate industry and are happy to be able to accommodate our clients who may be out of state or even US buyers in foreign countries to purchase real estate in Florida.
Scarab Title & Escrow Services, LLC, of North Pinellas, FL, provides title and escrow services to support reliable real estate sales. Working with realtors, listing agents, and sellers directly, these professionals serve all of Florida. They believe in open and honest client communication and make themselves available for calls after hours to ensure top-quality customer care. Learn more about their background in title insurance and real estate closing services online. For an appointment, call (727) 378-4553.