A new partnership between digital notary platform Notarize and Title Resources, a national title company, is ushering in faster and fully digital closings on real estate transactions in a handful of states. Consumers are able to complete a 100 percent digital closing process in 15 states, where they won’t have to be present at the closing table.
Many lenders and title companies now offer digital applications and underwriting processes. However, for the most part, buyers are still required to be present to have a notary public come on settlement day.
The company Notarize allows consumers to have their documents notarized via webcam. Notarize was part of the 2017 REach Accelerator program through Second Century Ventures, a strategic investment arm of the National Association of REALTORS® that mentors start-up firms and offers them wide exposure within the real estate industry. Earlier this year, Second Century Ventures also announced it was making a strategic investment in Notarize, following the company’s participation in the REach Accelerator program.
More than 60 percent of real estate professionals surveyed by NAR and Notarize earlier this year reported a closing last year that was delayed or canceled due to one of the parties not being able to be present. Thirty percent of respondents reported anywhere between 5 to 25 percent of their closings are delayed or canceled for this reason.
The new states announced under the new partnership between Notarize and Title Resources are Colorado, Connecticut, Delaware, Hawaii, Idaho, Louisiana, Massachusetts, Michigan, New Jersey, New Mexico, New York, North Carolina, Oklahoma, South Carolina, and Wisconsin.
That said, regulations over electronic notarizations can vary by county. As such, not every buyer in these states may be able to take part in a fully digital closing and notarized process.
“Understanding the value technology can bring to all participants of a real estate transaction, our organization has prioritized investing in technologies like Notarize that streamline complex processes and deliver newfound convenience,” says Scott McCall, CEO of Title Resources. “By reducing paper, time and human error, and allowing customers to close anytime, anywhere, on their terms, we are empowering our agents to deliver an exceptional customer experience.”
“Copyright National Association of REALTORS®. Reprinted with permission.”