Digital Closing

A major change is coming our way and Florida is finally on board with the new and exciting industry shift to digital closings.  Effective January 1, 2020, Florida will allow for Remote Online Notarizations (“RON”).

What is Remote Online Notarization (“RON”)? This allows an eNotarization (electronic signatures and notarization) to take place when the notary and the signer are not in the physical presence of each other.  This will be conducted through visual and audio software that allows the notary and signer to appear together online to complete the execution and notarization of the document. Depending on the notary vendor, a video will be captured of the remote online notarization of the document that can be saved to your file.  The notary will conduct an authentication process of the signer to ensure the signer is who they say they are.  If the notary does not believe the signer is the person, they will have the right to refuse to conduct the remote online notarization.  The RON vendor will carry the burden of verifying the identification of the signer.

Currently, Florida only allows for hybrid digital closings. To legally notarize a document in Florida as the law stands today, the notary must be in the physical presence of the signer. While electronic notarization and signatures are permitted in Florida, the “physical presence” requirement has prohibited the buyers and sellers from a true digital closing experience.  While Florida still requires the physical presence of the notary and signer, HGM makes it convenient for you by scheduling a mobile notary to go to your location of choice to notarize and collect the documents.

What is a hybrid closing? A hybrid closing is where some of the documents will be signed electronically, while others will require a “wet ink” signature.  Any documents that will require notarization must be completed in the presence of the notary (until January 1, 2020).

HGM Title & Escrow, PLLC utilizes a closing platform that allows all parties to the transaction to review documents, send documents, email secure messages, and see where you are in the closing process at any time.  The days of calling for status updates and playing phone tag is over because each respective party will have this information at their fingertips at all times. The borrowers will have the capability to review the loan documents in advance of the closing to review and electronically execute.  Most importantly, the borrower’s will not be rushed at the closing table to execute the closing documents. They can review the documents from the comfort of their couch electronically and send any questions they have to their closing agent, realtor, and/or lender. The lenders will have the capability to send the loan documents, review the CD/HUD, and send secure messages at any time. Wiring instructions will be only sent through the secured messaging center to eliminate the risk of fraud.  The realtors will have the capability to upload the purchase and sale agreement, view the status of the closing process and send messages to the parties.

While some lenders will still require “wet ink” signatures on the deed, mortgage, and/or promissory note, this industry shift is going to streamline the closing process without the necessity of coming to our office and signing voluminous documents in person. Of course, the buyers will need to consent to executing documents electronically and remote online notarizations. If the buyers do not want to conduct a digital closing, HGM welcomes its clients to come into its office and conduct a paper closing the good old fashion way.  Our goal is to make the closing process informative, easy and convenient to our clients- regardless if they wish to conduct a digital or paper closing.