Notarization is critical to ensure that mortgage transaction and deal closing occur legally and that everyone involved in the process is precisely who they claim to be. Traditionally, the closing of deals and the subsequent signing of the paperwork took place in person. The involved parties needed to be physically present to sign the documents in the concert of a notary public, a state-authorized agent who oversees the process. S/he verifies the authenticity of the paperwork.
Advancement in technology has helped in streamlining the notarization process, making the process faster and secure. Notaries in the European Union (EU) have been at the forefront of deploying technological solutions in their daily activities. They rank among the first notaries to use e-signatures when issuing public deeds and communicating with public and private entities. However, a new trend has emerged, and people have warmly welcomed the idea of remote online notarization.
Understanding Remote Online Notarization
Remote online notarization is where signatories and notaries sign public notarial documents online without the need for the involved parties to meet physically. That means that all parties need to access a video-conferencing platform where they put electronic signatures to the documents before a notary public.
In the US, the first paperless transaction took place on July 25, 2000. The treaty, which occurred in Broward County, Florida, involved real estate purchase, and it took but five minutes. It is now 20 years since that happened, and things have changed drastically. Digital technology has undergone tremendous changes, influencing every industry, including notarization processes.
The COVID-19: A Catalyst in the Adoption of Remote Online Notarization
The coronavirus pandemic has compelled many governments to authorize the use of RON systems to ensure that people adhere to social distancing protocols.
As the COVID-19 crisis continues, more and more companies are shifting their offices from densely populated business districts to the suburbs. The sparse population makes it easy to create a safer working environment for their employees. Additionally, many businesses are urging their staff to work remotely. It would only be best to take advantage of remote online notarization instead of relying on a face-to-face signing.
The establishment of RON laws could not have come at a better time. Notaries can now undertake their routine duties remotely without worrying about the geographical distance between them and other signers. On the other hand, signatories enjoy the convenience of signing the paperwork at the comfort of their home [or other places they prefer]. That saves them time and money that could have otherwise been spent on fuel or commuting to a notary office.
Legislations Surrounding Remote Online Notarization
By June 2020, twenty-six states in the US had passed laws that allowed RON closings. They include West Virginia, Florida, Texas, and North Dakota. Other states, such as the District and Maryland, allowed notarial acts remotely. According to a statement by the American Land Title Association (ALTA), approximately 30% of title settlement companies provide a digitized notarization process to meet social distancing guidelines.
Furthermore, on March 18, 2020, the US Senate passed the Securing and Enabling Commerce Using Remote and Electronic Notarization Act. The bill builds on lawmakers’ efforts to allow notaries within the US to leverage RON and provide their services using video and audio technology, as well as tamper-proof technology. The bill sets minimum standards for notaries in the bid to compel its widespread adoption.
The Future of Notarization
Many countries are currently developing legislation to encourage notaries to conduct their businesses remotely. People are crossing borders in their various pursuits all over the world. Finding the time to go to a notary public office when required can be a significant challenge. Most people own property in countries that they no longer reside in. Also, there are many binational marriages taking place. These circumstances indicate that there is a need for people to operate remotely without worrying about their security.
Conclusion
We are living in an age when technology has desecrated virtually all industrial sectors. People are constantly on the move, and finding time-saving opportunities is a constant desire. With remote online notarization, individuals and companies can sign legally-binding documents remotely using a notary public. Therefore, RON is not the one-hit-wonder type of tech solution. It is something that people, companies, and organizations will continue to use for many years to come.
