The State of New Jersey does not allow remote online notarization yet, but Two Rivers Title Company will be an early adopter once they do. As soon as it is legal here, we will be able to help you with online real estate closings for both residential and commercial properties. In the meantime, here is some information about this important development that is changing the face of real estate transactions.
What is Remote Online Notarization?
Remote online notarization is the process of getting documents notarized in electronic form without being in the same location as the notary. Notaries witness and authenticate millions of documents every year in United States real estate transactions, and historically this has always been done on paper, in person. That is starting to change, as remote online notarization continues to gain momentum across the country.
Remote notarization is changing the home buying process because it makes the fully online real estate closing process possible for the first time.
How Does Remote Online Notarization Work?
Remote notarization is a simplified process designed to make document authorization as quick and easy as possible without sacrificing security. Here’s not it works:
- The signers upload the documents they need notarized to a secure website as instructed by the notary.
- The signers take photographs of their photo IDs and enter the last four digits of their social security number.
- The signers confirm their identity by answering a series of authentication questions, such as addresses where they have lived or cars they have owned.
- The signers connect with the notary via video chat, and the documents are electronically signed and notarized.
- The signed and notarized documents are emailed to the relevant parties within minutes.
What are the Benefits of Online Closings?
Fully online closings are the future of real estate transactions, and have several benefits over the traditional in-person ink and paper closing process, including:
- It’s easier to buy out of state. If you are buying a second home or vacation home in another part of the country, online closings are a convenient solution to avoid long, frequent trips.
- It’s possible to get a better rate and terms. Homebuyers are no longer limited to lenders that are close by, and the increased competition could lead to more favorable terms.
- It’s less expensive. Without the need to produce paper documents, online closings are significantly less expensive for lenders than traditional closings. This may make lenders more willing to embrace remote closings going forward.
- It’s a quicker, more streamlined process. With no need for travel time or figuring out the schedules of all involved parties, everything happens much quicker in an online closing. This allows lenders and real estate professionals to operate more efficiently, and reduces the time commitment on the homebuyer. It also provides homebuyers with a more comprehensive, easy to understand process. Going forward, lenders who offer remote closings will have an edge over those who do not.
- There is a lower chance of error. Online closings reduce the potential for operational errors such as missing signatures or documents.
Fast, Secure Online Closings with Two Rivers Title Company
Unfortunately, because real estate transactions deal with large amounts of money and sensitive information, they have become a common target for wire fraud. If you need notary services during a real estate transaction, it is important to hire a company with the proper security measures in place. At Two Rivers Title, we take cyber risks very seriously. We offer cyber insurance coverage through our partner company, Two Rivers National Insurance Company (TRNIA). Once online closings are available in New Jersey, we will be able to provide them safely and securely.